Which of the Following Statements Is True

question 90

Multiple Choice

Which of the following statements is true?

• A)The empirical evidence indicates that countries with higher marginal tax rates have higher economic growth rates.
• B)Unlike other policies,supply-side tax cuts have their full impact on an economy instantaneously.
• C)The supply-side effects of changes in marginal tax rates take place over lengthy time periods.
• D)In the 1960s and 1980s,when the marginal tax rates were reduced,the share of income taxes paid by high-income taxpayers fell.

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Definitions:

Liability Rules

Legal principles that dictate how responsibilities and damages are to be handled or compensated in cases of harm or infringement.

Bargaining

The process of negotiating the terms of a transaction or agreement between parties, often involving compromises from the initial positions.

Property Rights

The legal rights to possess, use, and dispose of assets including real property, personal property, and intellectual property.

Negatively Affects

Leads to adverse consequences or reduces the quality or performance of something.