If There Is a Decrease in Taxes on Business Firms

question 43

Multiple Choice

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

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

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Definitions:

Win-lose Strategies

Approaches that aim for one party to win at the expense of another, often seen in competitive environments.

Competition

The rivalry among businesses or individuals for resources, customers, market share, recognition, or profits.

Voting

The action of expressing a choice or decision, typically within an electoral process or decision-making in groups.

Accommodation

Adjusting or adapting to someone's needs or a new situation.