According to the theory of supply-side economics, a cut in the tax rate will actually result in an increase rather than a decrease in tax revenues. Which statement best explains how this is supposed to happen?
a. Lower tax rates encourage greater investment, leading to economic growth that contributes to a higher tax base.
b. High tax rates stimulate government spending, which overheats the economy and brings on an economic downturn.
c. High tax rates give the government too much ability to pass and enforce regulations that are burdensome on the private sector.
d. Lower tax rates reduce bureaucratic intervention in the economy, allowing both consumers and producers to keep more of their own money.
a
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Which of the following is true of the Articles of Confederation?
A. The articles established a "league of friendship" among the states. B. The articles required nine of the 13 states to approve new amendments. C. The articles gave the power of taxation to the Continental Congress. D. The articles included a mechanism to coordinate the state courts.
Under which American president did the United States enter into full diplomatic relations with the People's Republic of China?
A) Harry Truman B) Dwight Eisenhower C) John Kennedy D) Lyndon Johnson E) Richard Nixon
The number of all households eligible for Medicare is destined to rise as the large baby-boomer generation reaches 65
Indicate whether this statement is true or false.
After 9/11 the George W. Bush administration viewed human-rights promotion as ______________________________.
Fill in the blank(s) with the appropriate word(s).