If tax reduction and simplification are effective, then
A) fewer new firms will be established, since existing firms will make more profit.
B) saving and investment in new capital will increase.
C) interest rates will rise in financial markets and demand for financial assets falls.
D) real wages will rise as labor supply and demand increase.
B
You might also like to view...
Inflation is a problem when
A) it is unpredictable. B) it causes the value of money to vary unpredictably. C) it causes resources to be diverted from productive uses. D) All of the above answers are correct.
Labor productivity refers to the total amount of output a worker produces in some period of time (an hour, a week, a month, a year)
a. True b. False Indicate whether the statement is true or false
Regulatory trade restrictions:
A. are irrelevant since they are seldom used. B. may be justified depending on the nature of the restriction. C. are always justified. D. are never justified.
An alternative to random experiments is to rely on ________ to mimic the controlled experiment.
A. mirror experiments B. manipulated experiments C. natural experiments D. predetermined experiments