One criticism against "supply-side" cuts in marginal tax rates is that they fail to:
A. Decrease disinflation in the economy
B. Decrease demand-pull inflation in the economy
C. Increase aggregate supply more rapidly than aggregate demand
D. Increase aggregate demand more rapidly than aggregate supply
C. Increase aggregate supply more rapidly than aggregate demand
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Refer to Figure 5-16. How much is Amit willing to pay per street light to have 4 street lights installed?
A) $3,600 B) $2,700 C) $1,800 D) $900
Which of the following is not an automatic stabilizer?
a. Personal income tax revenue. b. Corporate income tax revenue. c. Unemployment compensation benefits. d. Property tax revenue.
Bank A has checkable deposits of $100 million, vault cash equaling $1 million and deposits at the Fed equaling $14 million. If the required reserve rate is ten percent what is the maximum amount Bank A could lend?
A. $14 million B. $85 million C. $15 million D. $5 million
When the purchasing power of money is stable and predictable, this
A) increases transactions costs. B) facilitates gains from specialization, investment, and trade. C) encourages the use of bartering. D) makes it risky for individuals and businesses to save and borrow.