Would it be possible for an increase in taxation to decrease the gross domestic product measured in the U.S.? Why or why not?
Yes, it would be possible for an increase in taxation to decrease GDP. Higher levels of taxation would provide an incentive for more individuals and business to attempt to avoid taxation either legally or illegally. Such illegal activities would lead to an increase in the underground economy but a decrease in GDP.
Economics
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In the short run, a federal budget deficit will most likely _____
a. stimulate aggregate supply b. reduce federal debt c. boost economic growth d. reduce national saving e. boost domestic saving
Economics
If an exporter wants to limit the effect of possible changes in the exchange rate on the value of her exports, then she can adopt a strategy known as
A) floating. B) speculating. C) hedging. D) appreciating.
Economics