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Business, 16.04.2020 20:29 angelteddy033

The growth rate of Zerbia, a small developing country, has fallen close to zero percent in the current year. Harry Miller and Jonathan Taylor, who are columnists with a business daily, are discussing suitable fiscal measures to revive economic growth in the country. Jonathan feels that the income tax rates in Zerbia are too high. Lower income tax rates would increase consumer spending and so would promote economic growth. Harry, on the other hand, believes that an increase in government expenditure would have a substantial impact on the country's GDP. Additionally, he feels that investing in green technology would not only accelerate growth, it is also likely to be more sustainable in the long term. Which of the following can most reasonably be inferred from the information given above? A. Jonathan believes that the tax structure is not progressive enough. B. Private investment in green technology industries in Zerbia has been negligible. C. Harry thinks that the value of the government purchases multiplier is high. D. The economy of Zerbia is in a recession. E. Increase in government investment in infrastructure is likely to result in a higher budget deficit than the policy measure suggested by Jonathan.

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