Discuss the impact of the increase in government taxes on investment in the long run.
Investment: Investment can be defined as the sum of money that is being set aside by the individual or a group in the hope of receiving a good benefit or return in the future. To put it another way, to invest is to hold an asset or an item with the intention of earning money from it or getting benefited from the appreciation of your investment, which is also the rise in the object's value over time.
Government taxes are the main source of income for the government of a country, it is through the taxes that are being imposed on the consumers and the producers the government spends their money. The taxes have further been categorized into two category direct and indirect taxes.
Step by step
Solved in 3 steps