60.1K

Verified Solution

Link Copied!

1. The economy is booming and growing faster than potential GDP. The finance ministry has advised the government to raise stamp duty and other purchase service charges for those wanting to buy existing houses in order to slowdown economic growth. As well, the finance ministry wants the government to also raise company taxes as this will lead to firms decreasing their level of investment in the economy. The prime minister has asked you, as her chief economic advisor, for your views. In particular, she wishes to know the following:

1. Would a rise in stamp duty and other purchase charges on the purchase of existing houses really slowdown the economy? Your advise on this is ____________________ (Feel free to use external resources to assist you in your answer if you prefer).
2. Is the claim that higher company taxes decreasing investments correct or is it debatable if the future projections on economic growth remain positive, and can you explain why? Your advise on this is ____________________ (provide your answer and justification. Feel free to use external resources to assist you in your

Countries with low levels of debt-to-GDP ratios are rich countries. Explain why you agree or disagree with this statement and provide real world examples to support your argument.

Answer & Explanation Solved by verified expert

See Answer