question archive Suppose local governments throughout the United States increase their tax on business inventories
Suppose local governments throughout the United States increase their tax on business inventories
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Suppose local governments throughout the United States increase their tax on business inventories. What would you expect to happen to U.S investment? Why?
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Answer:
AS the tax on business inventories will rise , gross domestic private investment will fall.
Due to a high tax , corporate profits will fall.
Investment wii decline
