2) Assume a simple model of the expenditure sector with a positive income tax rate (t)....
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2) Assume a simple model of the expenditure sector with a positive income tax rate (t). AD = C + I + G + NX C = C + CYD YD Y-TA + TR = ΤΑ = TA + tY TR = TR BS = TA 1 =7 G = G NX = NX G - TR Show algebraically how an increase in lump sum taxes (TA) would affect the budget surplus. 2) Assume a simple model of the expenditure sector with a positive income tax rate (t). AD = C + I + G + NX C = C + CYD YD Y-TA + TR = ΤΑ = TA + tY TR = TR BS = TA 1 =7 G = G NX = NX G - TR Show algebraically how an increase in lump sum taxes (TA) would affect the budget surplus.
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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