A reduction in tax rates may result in a short-term reduction in government revenues, but it will also leave people with more disposable income.
a. true
b. false
Ans: a. true
You might also like to view...
Suppose the government finds a major defect in one of a company's products and demands that the product be taken off the market. We would expect that the
a. supply of existing shares of the stock and the price will both rise. b. supply of existing shares of the stock and the price will both fall. c. demand for existing shares of the stock and the price will both rise. d. demand for existing shares of the stock and the price will both fall.
The twin responsibilities of the Federal Reserve are:
A. to print money and ensure price stability. B. to ensure price stability and regulate international trade. C. to maintain full employment and balance the federal budget. D. to ensure price stability and maintain full employment.
Which would decrease investment demand?
a. A decrease in the stock of capital goods on hand b. A decrease in business taxes c. An increase in the rate of technological change d. An increase in the cost of acquiring capital goods
The ECB's Governing Council has price stability as a primary objective. It has defined price stability as:
A. an inflation rate in the three to five percent range. B. an inflation rate below, but close to, 2 percent over the medium term. C. a zero rate of inflation. D. an inflation rate less than 5 percent.