Answer:
1) Congress passes an investment tax credit:
This policy is likely to increase economic growth. An investment tax credit encourages businesses to invest in capital goods and equipment by providing them with a tax incentive. When businesses invest in new equipment or expand their operations, it can lead to increased productivity, job creation, and economic expansion. Overall, it can stimulate economic growth by fostering business investment and expansion.
2) A law that allows taxpayers to reduce income tax by the amount of state sales tax:
This policy may or may not significantly impact economic growth. Allowing taxpayers to deduct state sales tax from their federal income tax can put more money in the hands of consumers, potentially leading to increased consumer spending. However, the impact on economic growth may be modest, as it depends on individual spending decisions. Some taxpayers may choose to save or invest the additional money, while others may spend it. The overall effect on economic growth will depend on the extent to which increased consumer spending stimulates economic activity.
3) Congress provides more funds for low-interest college loans:
This policy is likely to have a positive impact on economic growth. Increasing funding for low-interest college loans makes higher education more affordable and accessible to a broader segment of the population. As more individuals can afford to pursue higher education or vocational training, it can lead to a more skilled and educated workforce. A highly skilled and educated workforce is generally associated with increased productivity, innovation, and economic growth. Additionally, it can help reduce the burden of student debt, allowing graduates to allocate more of their income to other forms of consumption or investment, which can further stimulate economic growth.
Step-by-step explanation: