________ Is a Proposition That a Strong Proponent of Supply-Side

question 62

Multiple Choice

________ is a proposition that a strong proponent of supply-side economics would most likely stress.

• A)Higher marginal tax rates will lead to a reduction in the size of the budget deficit and lower interest rates as they depend on government revenues
• B)Higher marginal tax rates promote economic inefficiency and thereby retard aggregate output as they encourage investors to undertake low productivity projects with substantial tax shelter benefits
• C)Income redistribution payments will exert little impact on real aggregate supply as they do not consume resources directly
• D)A tax reduction will increase the disposable income of households, and thus, the primary impact of a tax reduction on aggregate supply will stem from the influence of the tax change on the size of the budget deficit or surplus

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Definitions:

Cross-cultural Fairness

The extent to which assessments, tests, or measures are equitable and free of cultural bias across different cultural or ethnic groups.

Statistical Formation

Refers to the process of organizing and summarizing data through the use of tables, graphs, and statistical measures to make the data understandable and usable.

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together, showing the strength and direction of a relationship.

+.86

This could represent a statistical value, such as a correlation coefficient, indicating a strong positive relationship between two variables.