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Answer to Question #9795 in Finance for kunal
Question #9795
Discuss what might happen in an economy if a government increases income tax rates.
Expert's answer
If a government increases income tax rates:
1) the government revenues will increase
2) it will decrease the economic activity of business, especially the small firms
businessmen.
3) total decrease in economy, decrease of inflation rates or even deflation.
1) the government revenues will increase
2) it will decrease the economic activity of business, especially the small firms
businessmen.
3) total decrease in economy, decrease of inflation rates or even deflation.
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good job this brief answer will help me alot in remembering points for my revision for CAIE
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