In a Recent Research Paper Published by the European Central

question 157

Multiple Choice

In a recent research paper published by the European Central Bank,two economists concluded that U.S.tax revenues would

• A) increase if labor taxes were increased or if capital income taxes were increased.
• B) increase if labor taxes were increased, but tax revenues would decrease if capital income taxes were increased.
• C) decrease if labor taxes were increased, but tax revenues would increase if capital income taxes were increased.
• D) decrease if labor taxes were increased or if capital income taxes were increased.

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Definitions:

Effectiveness

The degree to which something is successful in producing a desired result or outcome; in a second definition, the capability of producing the intended result or achievement of objectives.

Persuade

To convince someone to do or believe something through reasoning or argument.

Stereotypes

Widely held but fixed and oversimplified image or idea of a particular type of person or thing.