Question

Scenario:Country SC hopes to create change in its technology industry.To influence the industry, the government implements a new fiscal policy by lowering the corporate tax rate.

What are the most likely effects of this policy? Check all that apply.

Businesses will likely pay workers less.
Businesses will likely hire more workers.
Businesses will likely earn higher profits.
Businesses will likely invest less in the economy.
Businesses will likely invest more in the economy.

Answer 1

B,C,E

Explanation: ;)

Answer 2

It would be:
Businesses will likely hire more workers - it means that the business due to lower tax rate can expand slowly and add more manpower to its management and company.
Businesses will likely earn more profits- lesser liabilities and expenditures can save more revenue that can add in profits or reinvest to earn more profits.
Businesses will likely invest more in the economy- having lower tax rate attracts businesses to invest in the country's economy thus rejuvenating the economy of the country.