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Business, 27.12.2019 00:31 Izzyfizzy

The growth rate of? zerbia, a small developing? country, has fallen close to zero percent in the current year. harry miller and jonathan? taylor, who are columnists with a business? daily, are discussing suitable fiscal measures to revive economic growth in the country. jonathan feels that the income tax rates in zerbia are too high. lower income tax rates would increase consumer spending and so would promote economic growth.? harry, on the other? hand, believes that an increase in government expenditure would have a substantial impact on the? country's gdp.? additionally, he feels that investing in green technology would not only accelerate? growth, it is also likely to be more sustainable in the long term.

which of the? following, if? true, would suggest that lowering income tax rates may not be very effective in reviving growth in the near? term?

a. income inequality in? zerbia, as measured by the gini? coefficient, has been calculated to be very high.

b. market research suggests that the slowdown in the economy has considerably increased? people's propensity to save.

c. the average wage rate for skilled labor is lower in zerbia compared to the other developing countries.

d. the? capital-output ratio in zerbia is around 0.3.

e. the income tax rate in zerbia rises with the level of taxable income.

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