Government policies that heavily tax some activities while subsidizing others and that fix or control interest rates will result in

Question

Koen Ross

Business

7 January, 11:30

Government policies that heavily tax some activities while subsidizing others and that fix or control interest rates will result in

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Damian Wilcox · Answer 1

Answer: Government policies that heavily tax some activities while subsidizing others and that fix or control interest rates will result in lower productivity of investment.

Explanation: Lowering productivity of investment will cause the economy to not do as well due to the small level of investments happening. When the government heavily taxes different things, it lowers the amount of people purchasing those items due to the high rates.