A Tax Cut Designed to Encourage Investment and Stimulate Economic

question 14

Multiple Choice

A tax cut designed to encourage investment and stimulate economic growth

• A) must be matched by a cut in government spending in order to be effective
• B) must be matched with tax increases in other areas,or with a cut in government spending,if crowding out is to be avoided
• C) will only work if it decreases the size of the budget deficit
• D) can only be effective if the tax burden is redistributed or government spending is cut
• E) will only work if it is a cut in the capital gains tax

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Definitions:

Armenian Genocide

The systematic mass killing and expulsion of ethnic Armenians by the Ottoman Empire during World War I.

American Attitude

The collective mindset or cultural outlook of the American people, which can vary widely on issues ranging from politics to social values.

Felix Frankfurter

An associate justice of the United States Supreme Court who served from 1939 to 1962, noted for his liberal judicial philosophy and advocacy for civil rights and liberties.

Nicola Sacco

An Italian-American anarchist who, along with Bartolomeo Vanzetti, was controversially convicted of murder and executed in 1927, leading to significant public outcry and debate over the fairness of their trial.