A cut in tax rate for reducing the cost of capital and encouraging business investment is an example of…
This is an expansionary supply side policy. Reducing the cost of capital encourages investment and expands productive capacity, which acts through the supply side of the…
Choose your answer
A cut in tax rate for reducing the cost of capital and encouraging business investment is an example of __________ .
Answer and explanation
Correct answer C
This is an expansionary supply side policy. Reducing the cost of capital encourages investment and expands productive capacity, which acts through the supply side of the economy.
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Maharashtra and Goa SET (MH SET)