Some economists claim that investment and economic growth are dependent upon income inequality

Graphically illustrate and explain the effects of a decrease in the saving rate on the Solow growth model. In your graph, clearly label all curves and equilibria

What will be an ideal response?

Assume that in year 1 you pay an average tax rate of 20 percent on a taxable income of $20,000. In year 2, you pay an average tax rate of 25 percent on a taxable income of $30,000. Assuming no change in tax rates, the marginal tax rate on your additional

$10,000 of income is: A. 5 percent. B. 12 percent. C. 35 percent. D. 42 percent.