If Tax Reduction and Simplification Are Effective,then

question 242

Multiple Choice

If tax reduction and simplification are effective,then

• A)real wages will rise as labor supply and demand increase.
• B)economic efficiency will increase.
• C)interest rates will rise in financial markets and demand for financial assets falls.
• D)fewer new firms will be established,since existing firms will make more profit.

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Definitions:

Counterconditioning

A therapeutic technique used to replace an unwanted response to a stimulus with a desired response, often used in behavior therapy.

Virtual Reality Exposure

A therapeutic technique using virtual reality technology to simulate real-world environments for the purpose of treatment, especially in phobias and anxiety disorders.

Unconditional Positive Regard

A non-judgmental acceptance and support of a person regardless of what the person says or does, often used in therapeutic settings.

Classical Conditioning

A method of learning by linking an environmental trigger with a naturally existing stimulus, which brings about a learned behavior.