Which of the Following Statements Is True

question 38

Multiple Choice

Which of the following statements is true ?

• A) Above the optimal tax rate, a reduction in tax rates along the downward-sloping portion of the Laffer curve would increase tax revenues.
• B) According to supply-side fiscal policy, lower tax rates would shift the aggregate demand curve to the right, expanding the economy and creating some inflation.
• C) The presence of the automatic stabilizers tends to destabilize the economy.
• D) To combat inflation, Keynesians recommend lower taxes and greater government spending.

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Definitions:

Office Manager

A professional responsible for overall office operations, ensuring efficient functioning through administrative, financial, and managerial tasks.

Good Business Communication

The effective exchange of information and ideas within a business environment that aids in decision-making and problem-solving.

Casual

Informal or relaxed in style or manner, often referred to clothing or conversation.

Concise

Expressing or covering much in few words; being brief but comprehensive.