Question: Suppose the government imposes a temporary sales tax one that is in

Suppose the government imposes a temporary sales tax-one that is in effect for a short time, but will disappear in the future. In a diagram relating current consumption to future consumption, how does your budget line shift? Which is preferable: a permanent sales tax or a temporary sales tax (assuming the rates are adjusted so they collect equivalent revenues)?


View Solution:


Sale on SolutionInn
Sales0
Views219
Comments
  • CreatedJanuary 24, 2013
  • Files Included
Post your question
5000