1 What is the impact on Argentina Business Rate which is at

1) What is the impact on Argentina Business Rate which is at 40% on Businesses, Government and Consumers.

Please two points for each and it should be short sentences.

Solution

Consumption of consumers will fall due to higher borrowing cost. This might reduce inflation for them and increase real income

In case of business it is now more costly to invest. Since investment led to profits in terms of higher sales along with higher prices due to inflation, profits will fall

Govt cost of borrowing increases both in nominal and real sense. But revenue will be raised through actions of central bank by charging higher interest rates.