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:

Direct Approach

A communication style or strategy that involves being straightforward and clear about intentions or demands.

Indirect Approach

A communication strategy where the main point or conclusion is presented after the details, background information, or arguments.

Buffer Statement

A statement used to soften the impact of bad news or a negative message, often used in communication to maintain goodwill.

Common Ground

Shared interests, beliefs, or understanding that allows different parties to find mutual agreement or a basis for communication.