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UNO [17]
2 years ago
11

The country of Doomsville is currently in a recession. The government of Doomsville, in an effort to maintain its tax revenues i

n a time when incomes are falling, decides to increase the tax rate. Would this policy help or hurt the recession?
This policy would have an unknown effect on Doomsville’s economy.

This policy would likely make Doomsville’s recession worse.

This policy would likely have no effect on Doomsville’s economy.

This policy would likely help Doomsville recover faster.
Social Studies
1 answer:
Lubov Fominskaja [6]2 years ago
8 0
Answer: This policy would likely make Doomsville’s recession worse

As changes in taxation are among the main tools of economic policy, their effects on the economy have been exhaustively studied
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A tax on automobiles imported into the United States that raises prices on imported vehicles to make the price of cars produced in the United States more competitive is <u>protective tariff</u>; a tax on all oil imported into the United States, which is implemented to raise money for the U.S. government, is <u>Revenue tariff.</u>

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<u>Protective tariff:</u>  

  • Protective tariff is understood by the tariffs that are enacted by the government with a motive to promote and protect the domestic industries.
  • In protective tariff, government allocates higher tax rate for the products that are imported from foreign countries when the same product is produced in the country.
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<u>Revenue tariff:</u>

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