President Reagan believed that the tax cuts of 1981 would stimulate the economy because the
a. marginal tax rates were too high, causing production costs to be too high, curbing production
b. marginal tax rates were too high, causing production to be curbed by lack of demand
c. marginal tax rates were too high, creating a disincentive effect on production
d. marginal tax rates were too low, causing government revenues to fall, creating deficit spending and crowding out
e. marginal tax rates were too low, causing government revenues to rise, creating surpluses that curbed overall production
C
You might also like to view...
The __________ serve to allocate financial resources among households and firms requiring funds.
Fill in the blank(s) with the appropriate word(s).
During recent years the U.S. unemployment rate has been substantially higher than the rate in most of the other major industrial nations.
Answer the following statement true (T) or false (F)
Which statement is FALSE?
A. Rent control is a price ceiling. B. Usury laws can lead to a surplus of loanable funds. C. The government, to encourage family farms to stay in business, created price supports for corn and wheat. D. Price ceilings prevent prices from rising.
Recessions in the U.S. economy show up in economic data as periods of
A) declining prices. B) rising interest rates. C) slower growth or actual decline in nominal GDP. D) slower growth or actual decline in real GDP.