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प्रश्न
Explain how indirect taxes can be inflationary.
Explain how indirect taxes prove to be inflationary.
थोडक्यात उत्तर
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उत्तर
- Indirect taxes are known to cause significant inflation. Indirect taxes on commodities lead to higher market prices.
- Rising prices increase the cost of living, leading trade unions to seek greater salaries to maintain workers' real incomes.
- Indirect taxes perpetuate a cycle of rising prices, costs, wages, and further price increases.
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Role of State in Economic Development
या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?
संबंधित प्रश्न
Which of the following is an advantage of direct taxes?
Fiscal policy means public expenditure and tax policy of the government.
Instruments of fiscal policy is:
Match the following and select the correct option:
| Column A | Column B | ||
| (i) | Taxes imposed on income and wealth | A. | Regressive |
| (ii) | Taxes imposed on goods and services | B. | Progressive |
| (iii) | A tax system where the rate of tax decreases with increase income | C. | Direct taxes |
| (iv) | A tax system where the rate of tax increases as income increase | D. | Indirect taxes |
Which of the following taxes generate civic consciousness among people?
Name any two instruments of Fiscal Policy.
Citing reason state the advantage of a progressive tax over proportional tax.
What is meant by shifting of tax burden?
Explain the term Impact of a tax.
Define the following term:
Fiscal deficit
