You are an economic advisor to the president.You are asked to recommend a policy to promote long-term economic growth in the economy.Which of the following policies would you choose?
A)a reduction in sales taxes
B)an investment tax credit
C)a reduction in taxes on luxury yachts
D)all of the above

Question

Quizplus · Accepted Answer

An investment tax credit would be the best choice as it encourages businesses to invest in capital goods and equipment, which can lead to increased productivity and long-term economic growth. Reduction in sales taxes and taxes on luxury yachts may have a short-term impact on consumer spending but do not necessarily promote long-term economic growth.

You Are an Economic Advisor to the President