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atroni [7]
3 years ago
12

Consider the following information:

Business
1 answer:
Stolb23 [73]3 years ago
7 0

Answer:

The individual will plan to spend or consume more of his wages than usual; since he believes there'll be a tax cut.

Explanation:

C = consumption

W = wages

Note: No graph is attached to the question so we can't make use of certain information in the question.

Suppose there is an announced change in tax policy - a tax cut/reduction - and a tax increase later; <em>what is the impact of this policy on consumption if the consumer believes that the policy will be implemented?</em>

<em />

Reasoning as an economist, the first reaction of a rational consumer is to begin to consume more since he believes the tax reduction policy will be implemented.

NOTE that sometimes the government or financial ministry in a country intentionally announce policies just so citizens can begin adjusting their consumption and investment patterns in line with them. They do not necessarily follow up with implementation of the policies.

So for a consumer who believes that there'll be a tax cut, he'll be excited and will either consume more of his present wage or consume all and borrow or dissave.

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A typical cost of a retirement would be the following:

Perhaps the "Car of the year".

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Answer:

A) The balance sheet will report the note receivable of $8,400

Explanation:

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This can significantly improve the quality of your project.

• When you have powerful stakeholders supporting you, you have access to useful resources as well.

This way, the likelihood of your project hitting higher success levels is higher.

• The active participation of your stakeholders in your project will make them understand the nature of your project and they can then contribute by actively supporting your project.

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