1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Oduvanchick [21]
3 years ago
5

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.
History
2 answers:
Levart [38]3 years ago
6 0
Savings increase and investment decreases

Aleksandr [31]3 years ago
3 0

Answer:

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

You might be interested in
How did Truman want to treat America’s allies and enemies in Europe after world war 2
igomit [66]
Bad because he rly didn’t care tbh he was too busy partying with his mistress
6 0
2 years ago
5. Which artist was one of the first to try to use<br>perspective in his paintings?​
aleksandrvk [35]

Answer:

Fillipo Brunelleshi

Explanation:

6 0
2 years ago
Read 2 more answers
Describe two other mechanisms for evolution in addition to natural selection
weqwewe [10]

Answer:

But mutation combined with one of the other mechanisms of evolution genetic drift natural selection nonrandom mating and gene flow can result in meaningful changes in allele frequencies in a population

Explanation:

have a nice day :)

4 0
2 years ago
PLZ HELP ASAP
Mariana [72]

Answer: A massive migration west

Explanation:

5 0
3 years ago
Read 2 more answers
Why is it important for the IMF to monitor exchange rates around the world?
kondor19780726 [428]
The main purpose of the IMF was to monitor the international fixed exchange rate system and to provide temporary loans to countries suffering balance of payments problems. ... The IMF conditionalities are the often-criticized conditions that the IMF places on foreign governments accepting their loans.
4 0
3 years ago
Other questions:
  • The Dreyfus Affair sent shock waves throughout France because it showed the extent of __________.
    14·2 answers
  • Why did President Eisenhower support the building of an interstate highway system? A. to cause suburbs to develop B. to encourag
    12·2 answers
  • After World War I, the British put together three provinces of
    14·1 answer
  • Yall...are dumb. Im sitting over here tryna cheat on a mf test. AND I KEEP FAILING. For example Ive failed 5 times (one of them
    7·1 answer
  • What do most elections for local state and federal offices have in common
    13·2 answers
  • What did the government of the Persian Empire and ancient Egypt have in common
    6·2 answers
  • What does Thompson say is his "greatest desire"? *
    15·2 answers
  • Where did many small farmers and poor whites live in Georgia?
    11·2 answers
  • Consider the poen's, short stories, and autobiographical pieces you read from the first half of the twentieth
    14·1 answer
  • Select the correct answer.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!