In a certain economy, people save some part of their income in the financial sector and use the remaining part for consumption.
The government decides to increase the tax rates for everyone in that economy. What effect will the tax increase have on savings and investment in the economy? A) Savings decrease, and investment decreases.
B) Savings increase, and investment increases.
C) Savings increase, and investment decreases.
D) Savings decrease, and investment increases.
Option A, Savings decreases and investment decreases, is the right answer.
Explanation:
The imposition of tax will decrease the disposable income because disposable income is the one that remains after paying the direct tax and this disposable income is further saved or consumed. However, tax and disposable income are inversely related. Therefore, if disposable income decreases then saving also decreases. Moreover, investment depends on saving. Thus, if the tax rate leads to a decrease in savings then the investment will also decrease
The German Empire and Austria-Hungary were Allied within the Central Powers, So I assume it was the German Empire in this case, Which Declared war on Russia and France and was at war with Britain due to the Invasion of Belgium.
I believe the answer is: Gaining control of Paris and forcing a change in the monarchy.
The revolutionaries planned to do this by eliminating Charles X , (who succeeded king louis after he was executed by his own people) . Eliminating Charles X from the government marked the end of monarch system in France, and changed it to popular sovereignty. Leaders of france was elected through democratic election after this event.
