The impact of instituting investment tax credits is
A) to stimulate private sector investments and increase aggregate demand.
B) to stimulate private production and increase aggregate supply.
C) to encourage individuals to save in an effort to increase funds available for investment.
D) to curtail in excessive lending by financial institutions.
Ans: A) to stimulate private sector investments and increase aggregate demand.
You might also like to view...
A law requiring the government to balance its budget in each year would serve as an automatic destabilizer
Indicate whether the statement is true or false
A 5 percent tax is going to be applied to a $100,000 tax base. What can be said about the revenue collected assuming static tax analysis?
A) The total revenue will be zero. B) The total revenue will be between $0 and $5,000. C) The total revenue will be $5,000. D) There is not enough information to determine what revenues will equal.