Indicate the Effect of Each of the Following Policies on the Variables

question 5

Essay

Indicate the effect of each of the following policies on the variables: Y, C, S, r, I, Ms, and Md.
(a) The government reduces the personal income tax rates.
(b) Firms become more pessimistic about future sales.

---

Definitions:

CSR Efforts

Corporate Social Responsibility refers to companies taking responsibility for their impact on society and the environment through practices that contribute positively.

Walmart

Refers to an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores.

Ethical Decision-Making

The method of examining and selecting options in a way that aligns with moral standards.

Course of Action

A plan or strategy designed to achieve a specific goal or to deal with a particular problem.