A decrease in the tax rate on capital gains can:
A. Reduce the level of investment.
B. Result in economic growth.
C. Reduce the level of saving.
D. Cause crowding out
B. Result in economic growth.
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The concept of choosing the least-cost combination of resources for a given amount of output is known as
a. technical efficiency. b. the principle of diminishing marginal returns. c. economic efficiency. d. decreasing returns to scale.
If you are offered a gamble in which you win 500 dollars 3/8 of the time and you lose 500 dollars 5/8 of the time, what is your expected payoff and your behavior given that you are a risk-lover?
A) $500, take the gamble B) -$125, take the gamble C) -$125, it is unclear what you would do without further information D) $500, decline the gamble E) -$125, decline the gamble
Low stock market prices might ________ consumers willingness to spend and might ________ businesses willingness to undertake investment projects
A) increase; increase B) increase; decrease C) decrease; decrease D) decrease; increase
The demand curve for the product of a monopolistically competitive firm
A) is perfectly elastic. B) is unitary elastic. C) is downward sloping. D) is perfectly inelastic.