Norway has a lower tax on dividend and interest income than does United Kingdom. We would expect Norway to have a ____________tax wedge and a ____________growth rate of real GDP.

Question

Quizplus · Accepted Answer

A lower tax on dividend and interest income in Norway would result in a smaller tax wedge, which is the difference between pre-tax and post-tax returns. This smaller tax wedge can encourage more investment and savings, potentially leading to a faster growth rate of real GDP.

Norway Has a Lower Tax on Dividend and Interest Income