According to supply-side economics, changes in marginal tax rates will have which of the following effects?
A. change the incentive to work
B. change the incentive to invest
C. change the incentive to save
D. all of these
Answer: D
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When an investor buys a corporate bond, the face value of the bond is
A) a dividend payment on the bond. B) a loan to the corporation. C) a measure of ownership in the corporation. D) the coupon rate of the bond.
Which of the following does NOT represent a possible shape of the long-run average cost curve?
A) downward sloping B) upward sloping C) U-shaped D) vertical
Suppose the demand for pens increases and the supply for pens decreases. What effect will it have on the equilibrium price for pens?
a. It will rise b. It will fall c. Uncertain d. None
For an economy, aggregate demand equals:
a. consumption plus investment plus government spending plus exports. b. consumption plus investment plus government spending plus (exports minus imports). c. consumption plus investment plus (taxes minus transfers) plus (exports minus imports). d. consumption plus investment plus government spending plus net exports (imports minus exports).