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Which of the Following Is a Tenet of Supply-Side Economics

Question 216

Multiple Choice

Which of the following is a tenet of supply-side economics?


A) High marginal tax rates severely discourage work, saving, and investment.
B) Increases in Social Security taxes and other business taxes shift the aggregate supply curve to the right.
C) The Federal Reserve should adhere to a monetary rule that limits increases in the money supply to a 5 percent annual rate.
D) Transfer payments increase incentives to work.

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