The higher the level of inflation, the stronger the impact of reductions in the personal income tax on real GDP .

Name: The higher the level of inflation, the stronger the impact of reductions in the personal income tax on real GDP .
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Question

Quizplus · Accepted Answer

The impact of tax reductions on real GDP depends on various factors, including the state of the economy, consumer confidence, and how the tax savings are spent, not just the level of inflation.

The Higher the Level of Inflation, the Stronger the Impact