Business, 28.11.2019 05:31, alyssaboosiefkes
The growth rate of zerbia, a small developing country, has fallen close to zero percent in the current year. harry miller and jonathan taylor, who are columnists with a business daily, are discussing suitable fiscal measures to revive economic growth in the country. jonathan feels that the income tax rates in zerbia are too high. lower income tax rates would increase consumer spending and so would promote economic growth. harry, on the other hand, believes that an increase in government expenditure would have a substantial impact on the country's gdp. additionally, he feels that investing in green technology would not only accelerate growth, it is also likely to be more sustainable in the long term. which of the following can most reasonably be inferred from the information given above? a. income inequality in? zerbia, as measured by the gini? coefficient, has been calculated to be very high.
b. market research suggests that the slowdown in the economy has considerably increased? people's propensity to save.
c. the average wage rate for skilled labor is lower in zerbia compared to the other developing countries.
d. the? capital-output ratio in zerbia is around 0.3.
e. the income tax rate in zerbia rises with the level of taxable income.
Answers: 2
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