Which of the Following Is True

question 78

Multiple Choice

Which of the following is true?

• A) When income tax rates fall,it is possible for tax revenues to rise.
• B) When income tax rates fall,it is possible for tax revenues to fall.
• C) All economists agree that a monetary rule is preferred to discretionary Fed policy.
• D) All economists agree that discretionary Fed policy is preferred to a monetary rule.
• E) a and b

---

Definitions:

Bargaining Power

The relative capacity of parties in a situation to exert influence over each other, usually in negotiations.

Commercial Contractors

are businesses or individuals that are contracted to perform work or provide services as part of commercial or business activities.

Consumer Lease

A legal agreement where a consumer agrees to rent personal property, like a car or household appliance, for personal, family, or household use for a period of time.

State Statute

A written law passed by a legislative body at the state level.