Economists believe that lower taxes should reduce unemployment because:
A. people have more incentive to be productive if the money they earn is not being taxed as much when taxes are low.
B. people have more incentive to find a job, knowing they will keep more of the income they earn from the job when taxes are low.
C. people will not want to miss out on the opportunity to keep more of the income they earn when taxes are lower, so they will have an incentive to keep their job and not quit.
D. None of these is true.
Answer: B
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A. 20% B. 35% C. 65% D. 10%
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A. risen; highest B. fallen; highest C. fallen; lowest D. risen; lowest