Which of the Following Attributes of Fiscal Policy Will Most

question 136

Multiple Choice

Which of the following attributes of fiscal policy will most likely be stressed by a proponent of supply-side economics?

• A) the impact of budget deficits on interest rates and aggregate demand
• B) the impact of government spending on aggregate demand, output, and employment
• C) the impact of marginal tax rates on the supply and productivity of resources
• D) the impact of budget deficits on the rate of taxation in the future

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Definitions:

Three Mountains

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Irreversible Thinking

Characterizes a cognitive limitation where an individual is unable to understand that certain processes can be reversed to their original condition.

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The cognitive ability to understand that certain properties of objects or substances remain the same even when their appearance changes.

Tadpole-Like Figure

A shape or form that resembles the larval stage of a frog or toad, characterized by a bulbous head and a long, thin tail.