Which of the Following Statements Is True

question 68

Multiple Choice

Which of the following statements is true?

• A)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 stabilisers tends to destabilise the economy.
• D)To combat inflation, Keynesians recommend lower taxes and greater government spending.

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Definitions:

Conflicting Emotions

The experience of having opposing or contradictory feelings toward a person, situation, or idea simultaneously.

Angry

A strong feeling of annoyance, displeasure, or hostility.

Mother Smiling

The act of a mother smiling at her child, which is significant for emotional bonding and social development in infants.

Lost

Unable to find one's way; not knowing one's whereabouts.