Question

What happens to the unemployment and inflation if the income tax is being reduced by 20%? Thank you xx

Answer 1

Answer:

1. Erodes Purchasing Power

2. Encourages Spending, Investing

3. Causes More Inflation

4. Raises the Cost of Borrowing

5. Lowers the Cost of Borrowing

6. Reduces Unemployment

7. Increases Growth

8. Reduces Employment, Growth

9. Weakens or Strengthens Money