Congress is considering legislation that will provide additional investment tax credits to businesses.Effectively,an investment tax credit reduces the cost to firms of using capital in production.Would you expect labor unions to lobby for or against such a bill?
(Hint:
What impact would such a plan have on the capital-to-labor ratio at the typical firm?
)

Question

Congress is considering legislation that will provide additional investment tax credits to businesses.Effectively,an investment tax credit reduces the cost to firms of using capital in production.Would you expect labor unions to lobby for or against such a bill?
 (Hint:
 What impact would such a plan have on the capital-to-labor ratio at the typical firm?
)

Quizplus · Accepted Answer

The Answer of Congress is considering legislation that will provide additional investment tax credits to businesses.Effectively,an investment tax credit reduces the cost to firms of using capital in production.Would you expect labor unions to lobby for or against such a bill?
 (Hint:
 What impact would such a plan have on the capital-to-labor ratio at the typical firm?
)

Congress Is Considering Legislation That Will Provide Additional Investment Tax