Which of the Following Is Likely to Occur Because of a Decrease

question 86

Multiple Choice

Which of the following is likely to occur because of a decrease in marginal tax rates?

• A)An increase in aggregate supply because of an increased incentive to work.
• B)A decrease in aggregate supply because people cash in their investments.
• C)A decrease in aggregate demand because of an increased incentive to work.
• D)A rightward shift in the Phillips curve.

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Definitions:

Outsourced Production

The practice of contracting external parties to produce goods or deliver services traditionally performed by the company's own employees or facilities.

Trade Agreement

A treaty or pact between two or more nations that outlines how they will work together to ensure mutual benefits in trade.

Royalty

A payment made to the owner of certain types of property, such as patents or copyrights, for the right to use that property.