A tax cut designed to encourage investment and stimulate economic growth

a. must be matched by a cut in government spending in order to be effective
b. must be matched with tax increases in other areas, or with a cut in government spending, if crowding out is to be avoided
c. will only work if it decreases the size of the budget deficit
d. can only be effective if the tax burden is redistributed or government spending is cut
e. will only work if it is a cut in the capital gains tax


B

Economics

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Economics

Suppose it is discovered that consumption of chocolate leads to a longer life. This information would lead to

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Economics

Under a fixed exchange rate regime, suppose there is an increase in housing wealth that causes an increase in consumption. This wealth-induced increase in consumption will cause

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Economics