Question

The fictional country of Alpetra increases the income tax rate so that tax revenues increase by $50 million. If GDP, consumption, and government spending remains the same and Alpetra is a closed economy, what is the change in investment?

Answer 1

Answer:

There is no change in investment for Apletra.

Explanation:

Because GDP, consumption, and government spending remains the same there would also be no chane in investment for Alpletra.