Supply-Side Economists Argue That Taxing of Nominal Gains and Interest

question 7

Multiple Choice

Supply-side economists argue that taxing of nominal gains and interest earnings during inflationary periods

• A)results in an increased effective tax rate on real returns but will not retard saving.
• B)will retard saving but will not increase the effective tax rate on real returns.
• C)will increase the effective tax rate on real returns and will retard saving.
• D)None of the above

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