Which of the following affects the willingness of firms to invest and the willingness of households to work and save?
A)the government's tax policy
B)the government's foreign policy
C)sustainable growth policy
D)long-run growth of output policy

Question

Quizplus · Accepted Answer

Tax policy directly affects both the willingness of firms to invest and households to work and save. Lower tax rates can lead to higher after-tax profits for firms, providing incentive for investment. And lower taxes on households can lead to a higher disposable income, increasing the incentive to work and save.

Which of the Following Affects the Willingness of Firms to Invest