Suppose Congress Repeals an Investment Tax Credit That Decreases the Quantity

question 166

Multiple Choice

Suppose Congress repeals an investment tax credit that decreases the quantity of investment goods that firms demand at any given interest rate. Which of the following would you expect to occur as a result of this change?

• A)In the short run, unemployment will decrease and inflation will rise.
• B)In the short run, unemployment will decrease and inflation will fall.
• C)In the short run, unemployment will increase and inflation will fall.
• D)In the short run, unemployment will increase and inflation will rise.

Recognize the importance of biological, psychological, and social factors in child development.

Understand the concept and implications of quota limits in markets.

Analyze how government-imposed quotas affect supply, demand, and market prices.

Identify the role and calculation of quota rent in quota-imposed markets.

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Definitions:

Completing Tasks

Completing tasks involves finishing set duties or assignments effectively and within the stipulated timeframe.

Employee Lists

Records maintained by a business that contain information about its employees, such as contact details and employment history.

QBO Online

Refers to QuickBooks Online, a cloud-based accounting software solution designed for small and medium-sized businesses.

Retirement Accounts

Financial accounts that offer tax benefits and are specifically designed for saving for retirement.