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.
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter14: Investment, The Capital Market, And The Wealth Of Nations
Section: Chapter Questions
Problem 5CQ
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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