A tax ________ is more likely to cause a permanent increase in investment and worker productivity in an economy with a ________.

Question

Quizplus · Accepted Answer

A tax decrease would provide more disposable income to consumers and businesses, leading to an increase in investment and worker productivity. This effect would be more permanent in an economy with a large government budget deficit, as the deficit represents the government's involvement in the economy and a decrease in taxes could help offset this.

A Tax ________ Is More Likely to Cause a Permanent