Answered

The most likely effect of an decrease in income tax rates would be a(n): increase in interest rates. decrease in the supply of loanable funds. decrease in the savings rate. all of the above would occur none of the above would occur

Answer :

Parrain

Answer:  none of the above would occur

Explanation:

When there are lower tax rates, people will have more disposable income left aft paying taxes. It is from this disposable income that people are able to save so if it increases, they will be able to save more.

When they save more, supply of loanable funds will increase because loanable funds come from savings. Interest rates would therefore decrease because there are now more loanable funds.

Martebi

Income tax rate are taxes placed or collected on income of people. The most likely effect of an decrease in income tax rates would be none of the above would occur

Lower tax rates often leads to the following:

  • An increase the demand for assets
  • An increase in the supply of labor.
  • The economy will react to it by having with lower interest rates, higher employment, higher investment and faster economic growth.
  • It often increase the spending power of consumers
  • It also increase aggregate demand, resulting to higher economic growth.

Learn more from

https://brainly.com/question/15173651

Other Questions