Which of the Following Best Explains Why High Marginal Tax

question 30

Multiple Choice

Which of the following best explains why high marginal tax rates retard output?

• A) High marginal tax rates reduce the incentive to earn, invest, and use resources efficiently.
• B) High marginal tax rates will encourage foreign investment.
• C) High marginal tax rates will reduce budget deficits and lower interest rates.
• D) High marginal tax rates encourage people to substitute more-desired nondeductible goods for less-desired tax-deductible goods.

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Definitions:

Linguistic Change

The evolution and modification of languages over time, including changes in vocabulary, syntax, phonetics, and semantics.

Routine Greetings

Standard expressions or gestures used when meeting or parting from someone, varying across cultures.

Indo-European Family

A large linguistic family encompassing languages spoken in Europe, parts of Asia, and historically, in other regions by migration or colonialism.

Native Languages

The first language that a person learns from birth, often related to the individual's ethnic group or country of origin, and is a crucial component of cultural identity.