Multiple Choice
Which statement(s) is/are TRUE? I. Changes in tax rates impact only aggregate demand.
II) According to the Laffer curve, if the tax rate is above 50%, lowering the tax rate will always raise tax revenue.
III) A repeal of existing investment tax credits will cause aggregate supply to shift to the left.
A) I and II only
B) II and III only
C) II only
D) III only
Correct Answer:
Verified
Correct Answer:
Verified
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