If There Is an Increase in Taxes on Business Firms

question 43

Multiple Choice

If there is an increase in taxes on business firms in a small open economy,it causes the current account to ________ and saving ________.

• A)fall;fall
• B)rise;remain unchanged
• C)fall;remain unchanged
• D)rise;fall

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Definitions:

Indirect Costs

Expenses not directly tied to the production of goods or services but are necessary for the overall operation, such as utilities or administrative salaries.

Intangible Expenses

Costs associated with non-physical assets or activities, such as branding, intellectual property, or research and development.

Clerical Expenses

Costs associated with administrative tasks and office support services.

Formative Evaluations

Assessments conducted during the development of a project, program, or curriculum to provide feedback and guide improvements.