What effect taxes will have on the investment rate today

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Question: Deficits and investment: Suppose the government decides to reduce taxes today by 1% of GDP, financed by higher borrowing, with the borrowing to be repaid 10 years from now with higher taxes. Discuss the various arguments about what effect this will have on the investment rate today. The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM132119379

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