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1) Explain which of the following policies you believe are likely to increase the rate of economic growth in the United States.
a. Congress passes an investment tax credit, which reduces a firms taxes if it installs new machinery and equipment.
b. Congress passes a law that allows taxpayers to reduce their income taxes by the amount of states sales taxes they pay.
c. Congress provides more funds for low-interest loans to college students.
2) What effect does the payment of government unemployment benefits have on the unemployment rate? On the severity of recessions? Do you think that people should be allowed to receive unemployment benefits for 99 weeks?
