Aug
02
2011
If Congress increases business taxes at the same time that the Fed conducts an open market sale, what happens?
Assuming that crowding out is not an issue, what happens to output and price level?
I am stuck and confused on this, an explanation would be greatly appreciated.
This conversation was published at Accounting Services of Charlotte, NC
Tagged Business, conducts, Congress, happens, increases, Market, Open, Sale, same, Taxes, Time
mt_pelionAugust 2, 2011 at 6:01 pm
Congress has never passed a tax law “effective immediately”. They always set a date in the future when the new tax rate will take effect.
Kamelia.KAugust 2, 2011 at 6:21 pm
You might find your answer here, in this site:
http://en. wikipedia. org/wiki/Federal_Reserve
It’s about the Federal Reserve, which is your topic, for your question.