Suppose the government reduces the corporate income tax rate. This will increase the return to firms for investing, which should investment and cause in capital in the long run.

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Author:Steven A. Greenlaw; David Shapiro
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Chapter13: Positive Externalities And Public Goods
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Problem 18CTQ: Is it inevitable that government must become involved in supporting investments in new technology?
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Concept: Long-Run Effect of Tax Policy 4
Suppose the government reduces the corporate income tax rate. This will increase
the return to firms for investing, which should
investment and
in capital in the long run.
cause
Transcribed Image Text:Concept: Long-Run Effect of Tax Policy 4 Suppose the government reduces the corporate income tax rate. This will increase the return to firms for investing, which should investment and in capital in the long run. cause
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