Multiple Choice
Most economists believe that a cut in tax rates
A) would generally increase government tax revenue.
B) would have no effect on aggregate demand.
C) has a relatively small effect on the aggregate-supply curve.
D) All of the above are correct.
Correct Answer:
Verified
Correct Answer:
Verified
Q45: Government purchases are said to have a<br>A)multiplier
Q46: A tax cut shifts aggregate demand<br>A)by more
Q47: Which of the following tends to make
Q48: The term crowding-out effect refers to<br>A)the reduction
Q49: When taxes increase,interest rates<br>A)increase,making the change in
Q51: In order to simplify the equation for
Q52: An increase in government spending initially and
Q54: Which of the following is an example
Q54: Fiscal policy refers to the idea that
Q55: Suppose the MPC is 0.60.Assume there are