According to Real Business Cycle Theory,an Increase in Taxes

question 7

Multiple Choice

According to real business cycle theory,an increase in taxes

• A)would significantly reduce labor supply,increase employment,and decrease output.
• B)a decline in employment but not in output.
• C)would significantly reduce labor supply,and decrease employment and output.
• D)no change in output and employment.

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Definitions:

Money Market Securities

Short-term financial instruments with high liquidity and minimal risk, such as Treasury bills and certificates of deposit.

Total Assets

The sum of all current and non-current assets owned by a company, reflecting its overall value.

Open-End Funds

Mutual funds that continuously issue new shares or redeem existing shares and do not have a fixed number of shares available for the public.

NAV

Net asset value, calculated as the total value of a fund's assets minus its liabilities, usually applied to mutual funds.