Tax revenues to reduce rate of inflation
Explain how government might manipulate its expenditures and tax revenues to reduce rate of inflation?
Expert
To reduce the rate of inflation, government should reduce aggregate spending for goods and services in the economy. It can do so by decreasing its own spending and/or by increasing taxes, which would induce consumers to spend less. It could also encourage the monetary authorities to reduce the supply of money and credit.
simultaneous method in demand forecasting?
Cost of debt= (1-tax rate)* interest rate * (debt ÷capital employed)Cost of equity = risk free rate + market premium (equity shareholders funds÷ capital employed)
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