A proponent of supply-side economics would be most likely to stress that:4Select one:a. high marginal tax rates would promote economic inefficiency and decrease aggregate output in an economy.b. income redistribution payments would have little impact on real aggregate supply in an economy.C. a tax reduction would reduce incentives to work and invest in an economy.d. government purchases rather than tax cuts would be better suited to stimulate aggregate demand in an economye. high marginal tax rates would lead to a reduction in the budget deficit and lower interest rates in an economyO Which of the following is true if the government cuts taxes in a way that reduces marginal tax rates as opposed to a way that does not reduce marginal tax rates if the impact on taxrevenues is the same in both cases?Select one:a. Lower marginal tax rates will increase the incentive to earn income and, thereby, stimulate aggregate supply.Ob. Both cases will increase people's incentive to save in the expectation of higher future taxes and, thereby, offset the stimulus effect of lower taxes.C. Interest rates will increase if marginal tax rates are lowered, whereas they will decrease if marginal tax rates are left unchanged.Od. Interest rates will increase if marginal tax rates are lowered, whereas they will decrease if marginal tax rates are left unchanged.e. Both actions will exert the same impact on aggregate supply and demand

my questi A proponent of supply-side economics would be most likely to stress that: Select one: O a. high marginal tax rates would promote economic inefficiency and decrease aggregate output in an economy. Ob. income redistribution payments would have little impact on real aggregate supply in an economy. OC. a tax reduction would reduce incentives to work and invest in an economy. O d. government purchases rather than tax cuts would be better suited to stimulate aggregate demand in an economy e. high marginal tax rates would lead to a reduction in the budget deficit and lower interest rater in

my questi A proponent of supply-side economics would be most likely to stress that: Select one: O a. high marginal tax rates would promote economic inefficiency and decrease aggregate output in an economy. Ob. income redistribution payments would have little impact on real aggregate supply in an economy. OC. a tax reduction would reduce incentives to work and invest in an economy. O d. government purchases rather than tax cuts would be better suited to stimulate aggregate demand in an economy e. high marginal tax rates would lead to a reduction in the budget deficit and lower interest rater in

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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