Which of the Following Is a Tenet of Supply-Side Economics

question 28

Multiple Choice

Which of the following is a tenet of supply-side economics?

• A) High marginal tax rates severely discourage work,saving,and investment.
• B) Increases in social security taxes and other business taxes shift the aggregate supply curve to the right.
• C) The Federal Reserve should adhere to a monetary rule that limits increases in the money supply to a 5 percent annual rate.
• D) Transfer payments increase incentives to work.

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Definitions:

Business Combination

A transaction or event in which an acquirer obtains control of one or more businesses.

Fair Value

An estimated market value of an asset or liability based on current market conditions rather than historical cost.

Vesting Date

The date on which an employee gains full control over the benefits or stock options granted as part of their compensation package.

Remuneration Expense

Costs incurred by an organization to compensate its employees, including salaries, wages, bonuses, and benefits.