Econo ile ilgili hikayeler

When tax increases are made to balance the public budget deficit, the ratio of public debt to GDP generally increases. In other words, raising taxes to save money produces the opposite result. This is because the increase in taxes decreases the demand in the market, and since fewer transactions are realized, the tax revenues that the public sector desires to balance the budget cannot be obtained. However, when the public saves, the ratio of public debt to national income decreases.