(See Solution) Chapter 11 Briefly explain whether any of the following policies are likely to increase the rate of economic growth in the United States.
Question: Chapter 11
Briefly explain whether any of the following policies are likely to increase the rate of economic growth in the United States. Give economic rationale.
- Congress passes an investment tax credit, which reduces a firm’s taxes if it installs new machinery and equipment.
- Congress passes a law that allows taxpayers to reduce their income taxes by the amount of state sales taxes they pay.
- Congress provides more funds for low-interest loans to college students.
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