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Is it true that government revenues are increased because of lower tax rates?
Ans) It is true to a point. The Laffer curve determines that revenues enhance as the tax rates rise (0 tax rate = 0 revenue) up to a point, but the enhance slows as the rate rises higher and at some point total revenue starts to decline. If your incremental tax rate is 1% and you can work 4 hours to make $100, you will get to keep $99 and most people would be willing to do this. You would probably will to work the additional hours if you were taxed 5 or 10%. Though, if you were subject to an incremental rate of 99%, you would not work that long knowing the government was only going to let you stay $1. The "magic number" seems to be somewhere around 15-20%. If the rates are above this, people are not motivated to enhance their earnings. Big corporations react the similar way.
What are the potential advantages of economic growth? The potential advantages of growth include • More goods and services are accessible to satisfy more want and requireme
What are the different stages of analysis in planning activities?
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.Clearly explain how net foreign investment links the market for loanable funds and the market for foreign currency exchange. Make sure you define net foreign investment in your an
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