Country A uses a complementary approach to support R&D. Assume that each dollar of forgone tax revenue through the R&E tax credit causes firms to invest at least $1.50 in R&D. Calculate the total investment in R&D caused by the R&E tax credit if the forgone tax revenue through the R&E credit is $3.1 million. Enter your answer in the box below and round to two decimal places if necessary.
Country A uses a complementary approach to support R&D. Assume that each dollar of forgone tax revenue through the R&E tax credit causes firms to invest at least $1.50 in R&D. Calculate the total investment in R&D caused by the R&E tax credit if the forgone tax revenue through the R&E credit is $3.1 million. Enter your answer in the box below and round to two decimal places if necessary.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Country A uses a complementary approach to support R&D. Assume that each dollar of forgone tax revenue through the R&E tax credit causes firms to invest at least $1.50
in R&D.
Calculate the total investment in R&D caused by the R&E tax credit if the forgone tax revenue through the R&E credit is $3.1
million. Enter your answer in the box below and round to two decimal places if necessary.
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