As the world financial crisis has taken hold, China's Central Government moved to increase the value-added tax (VAT) refund rates on several industries in an effort to boost production. For example, China has increased the tax rebate on textiles at least four times over the past six months...
1a. Coupon entered is not for any purchased item: 1.System signals error to Cashier. 9a. There are product rebates: 1.System presents the rebate forms and rebate receipts for each item with a rebate. 9b. Customer requests gift receipt (no prices visible): ...
tax cut Y r LM r 1 Y 1 IS 2 Y 2 r 2 the initial boost in spending is smaller for T than for an equal G… and the IS curve shifts by M P C 1 M P C T 1. 2. 2. …so the effects on r and Y are smaller for a T than for an equal G. 2. 2. …causing the ...