Which of the following is correct?
a. Well designed tax cuts can increase investment which fluctuates more than consumption over the business cycle.
b. Well designed tax cuts can increase investment but it fluctuates less than consumption over the business cycle.
c. Tax cuts have little effect on investment which fluctuate more than consumption over the business cycle.
d. Tax cuts have little effect on investment but it fluctuates less than consumption over the business cycle
Answer: a. Well designed tax cuts can increase investment which fluctuates more than consumption over the business cycle.
You might also like to view...
When GDP is measured in "current prices" it is known as the
A) real GNP. B) real GDP. C) nominal GNP. D) nominal GDP.
Under the Clayton Act, horizontal mergers by stock acquisition were:
a. not considered. b. illegal if they could be show to lessen competition. c. illegal under any circumstances. d. legal if they could be shown to lessen competition.
The term market failure refers to
a. a market that fails to allocate resources efficiently. b. an unsuccessful advertising campaign which reduces demand. c. ruthless competition among firms. d. a firm that is forced out of business because of losses.
When a country imposes a tariff to protect a domestic monopolist from international competition, it will produce _______ output and charge _______ in a perfectly competitive domestic industry.
a. more; a higher price than b. the same; the same price as c. less; a higher price than d. less; a lower price than