If Tax Reduction and Simplification Are Effective, Then

question 31

Multiple Choice

If tax reduction and simplification are effective, then

• A)real wages will rise as labour supply and demand increase.
• B)saving and investment in new capital will increase.
• C)interest rates will rise in financial markets and demand for financial assets will fall.
• D)fewer new firms will be established, since existing firms will make more profit.
• E)government revenue will increase.

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Definitions:

New Mexico Territory

The New Mexico Territory was an organized incorporated territory of the United States that existed from 1850 until 1912, when the remaining portion of the territory was admitted as the state of New Mexico.

Union Forces

The army and military resources of the United States (the North) during the American Civil War, battling against the seceding Confederate states.

Confederate Forces

Military forces representing the Confederate States of America during the American Civil War (1861-1865), primarily composed of volunteers and conscripts fighting for southern independence.

Indian Wars

A series of conflicts and battles between European settlers or the U.S. government and the indigenous peoples of North America, spanning from the early colonial period to the late 19th century.