Which of the Following Is a Tenet of Supply-Side Economics

question 216

Multiple Choice

Which of the following is a tenet of supply-side economics?

• A) High marginal tax rates severely discourage work, saving, and investment.
• B) Increases in Social Security taxes and other business taxes shift the aggregate supply curve to the right.
• C) The Federal Reserve should adhere to a monetary rule that limits increases in the money supply to a 5 percent annual rate.
• D) Transfer payments increase incentives to work.

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Definitions:

Forecasting Techniques

Methods or processes used in attempting to predict future events or trends, based on historical data and analysis.

Cash Flows

The inflows and outflows of cash for a business, indicating the company's operational health and its ability to generate profits.

Capital Budgeting

The process of planning and evaluating expenditures on assets whose cash flows are expected to extend beyond one year.

Undepreciated Capital Cost (UCC)

The amount remaining to be claimed as Capital Cost Allowance over time for an asset class.