Impact of fiscal policy on the us economy


Problem: Tax rates on both dividends and capital gains have been cut down to historical lows. Maximum tax rate on both dividends and capital gains is now set at 15%. Policy makers agreed to such a reduction hoping to see faster economic recovery, and further job growth. These policy makers would like to get your expert opinion on this issue.

1. Do you think lower taxes on dividends and capital gains can help hasten an economic recovery?

2. Further growth in the US production and job markets? Why?

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Microeconomics: Impact of fiscal policy on the us economy
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