The following points highlight the six major effects of inflation. The effects are: 1. Effects on Distribution of Income and Wealth 2. Effects on Production 3. Effects on Income and Employment 4. Effects on Business and Trade 5. Effects on the Government Finance 6. Effects on Growth. 1. Effects on Distribution of Income and Wealth: The impact of inflation is [...]
The below mentioned article provides an overview on the Effects of Various Taxes on Managerial Decisions. Excise Duties and Sales Tax: An excise duty is imposed on domestic consumption spending. It is imposed on a particular commodity or service. It is akin to a sales tax. In India, for instance, the Central Government has imposed high rate of excise duty [...]
The following points highlight the eight main effects of changes in investments. The effects are: 1. A Change in Desired Investment 2. The Income-Expenditure Approach 3. The Leakages-Injections Approach 4. Non-Autonomous Investment 5. A Change in Desired Consumption and Saving 6. The Paradox of Thrift 7. Induced Investment and Thrift 8. Inflationary and Deflationary Gaps. Effect # 1. A Change [...]