In October 2008, President Bush Enacted the Alternative Minimum Tax

question 46

Multiple Choice

In October 2008, President Bush enacted the Alternative Minimum Tax Relief Act of 2008, which resulted in lower taxes on labor income. According the supply- side view, as a result of this act the incentive to work _ and the tax wedge _ .

• A) increases; decreases
• B) increases; does not change
• C) increases; increases
• D) decreases; increases

---

Definitions:

Movability

The quality of a negotiable instrument that ensures it is mobile and available.

Negotiable Instruments

Negotiable instruments are written orders or unconditional promises to pay a fixed amount of money on demand or at a set time to the bearer or to the order of a specified person.

Consideration

Something of value that is exchanged between parties within a contract, giving it legal validity.

Offer And Acceptance

Fundamental concepts in contract law which determine when an agreement exists between two parties. An offer is a proposal while acceptance is the agreement to that proposal.