Describe the income and substitution effects of an increase, Business Economics

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Describe the income and substitution effects of an increase

1. What would be the effect of a switch to taxing individuals on the basis of their own income (rather than family income) on labor force participation of wives?

2. Describe the income and substitution effects of an increase in the interest rate for a borrower. What does this imply for the effect of eliminating tax deductibility of interest payments?

3. What might be meant by a “truth in taxation” law?

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Business Economics: Describe the income and substitution effects of an increase

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Business Economics: Describe the income and substitution effects of an increase

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