Choose the Correct Statement

question 58

Multiple Choice

Choose the correct statement.

• A)Tax cuts increase aggregate supply and aggregate demand.
• B)Tax cuts strengthen the incentive to work and to invest.
• C)The tax multiplier becomes smaller as time passes.
• D)According to Barro and Uhlig, tax cuts are a less powerful way to stimulate real GDP than spending increases.
• E)Both A and B are correct.

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Definitions:

Taste Buds

Small sensory organs on the tongue and other parts of the mouth that are capable of detecting different flavors.

Stereo Equipment

A set of audio electronics intended for entertainment or informational listening purposes, which includes speakers, amplifiers, and source components like turntables or CD players.

Frequencies

A statistical measure referring to the number of times an event or occurrence appears within a specific dataset or period of time.

Savory

Savory refers to food that is pleasantly salty or spicy, not sweet, often associated with hearty dishes.