Supply-side economists argue that taxing of nominal gains and interest earnings during inflationary periods
a. results in an increased effective tax rate on real returns but will not retard saving.
b. will retard saving but will not increase the effective tax rate on real returns.
c. will increase the effective tax rate on real returns and will retard saving.
d. None of the above
C
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People tend to remain in those occupations that require continuous time and financial commitments to remain productive
a. True b. False Indicate whether the statement is true or false
Which statement is false?
A. During the Great Depression millions of working-class and middle-class people demanded welfare payments. B. Until the 1930s the prevalent theory of poverty was that the poor were lazy. C. The heritage of slavery theory explains most poverty in this country. D. None of these statements are false.
If an economy were experiencing a high rate of unemployment as the result of insufficient aggregate demand, a Keynesian economist would favor:
A. a reduction in taxes coupled with a reduction in government expenditures of equal size. B. an increase in government expenditures coupled with an increase in taxes of equal size. C. a reduction in taxes, without any offsetting reduction in government expenditures. D. maintenance of a balanced budget.
Demand tends to be elastic at higher prices and inelastic at lower prices.
Answer the following statement true (T) or false (F)