Suppose that Congress passes legislation that establishes a tax credit for small businesses and tax incentives for

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Suppose that Congress passes legislation that establishes a tax credit for small businesses and tax incentives for all businesses that invest in new plant and equipment.

a) What is the anticipated effect of these proposals on aggregate demand, if any?

b) Show your answer graphically.

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Macroeconomics Policy And Practice

ISBN: 978-0133424317

2nd Edition

Authors: Frederic Mishkin

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Question Posted: Feb 20, 2024 04:01 AM

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Suppose that Congress passes legislation that establishes a tax credit for small businesses and tax incentives for

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a The proposed tax credit for small businesses and tax incentives for all b...View the full answer

Macroeconomics Policy And Practice

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