Tax credit, Macroeconomics

Assignment Help:

Suppose that an investment tax credit is stated to be temporary in nature, and the credit will be 10% on newly acquired capital (investment) equipment and will last just one year only.

a.  What would you predict to be the effect of this tax credit in the long-run (say, 5 or 6 years)?

b.  What would you predict to be the effect of this tax credit in the current year and the following year?

c.  How would your answers to parts (a) and (b) differ if the tax credit were permanent?

 


Related Discussions:- Tax credit

Investment strategy management, I am studying Investment Management. My ass...

I am studying Investment Management. My assignment is to develop my own Investment Strategy in the light of existing Macroeconomic environment situation for a country such as Pakis

Inflation, if govtment face cost push inflation which policy govtment shoul...

if govtment face cost push inflation which policy govtment should take to control inflatoin?

Nine patients are selected at random, A recent study in NJ showed that 50% ...

A recent study in NJ showed that 50% of all patients will return to the same dentist. Suppose nine patients are selected at random, what is the probability that: (a) exactly five o

Determine the current in the neutral conductor, A 415V, 3-phase, 4 wires, s...

A 415V, 3-phase, 4 wires, star-connected system supplies three resistive loads as shown in Figure. Determine (a) The current in each line and (b) The current in the neutr

Effect of distance on completed, From stock and watson 3rd edition introduc...

From stock and watson 3rd edition introduction to econometrics Using the data set CollegeDistance described, run a regression of years of completed education (ED) on distance to t

Aggregate demand and aggregate supply model, In the late 1990s, a growing n...

In the late 1990s, a growing number of economists expressed concern that the world policy makers were often focusing too much on fighting inflation, without fully taking into accou

Theories of international trade, comparison between neoclassical factor end...

comparison between neoclassical factor endowment theory of international trade and classical labor cost theory of comparative advantage

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd