Supply-Side Policy to Reduce Inflation Would Focus on

question 46

Multiple Choice

Supply-side policy to reduce inflation would focus on

• A)Decreasing the money supply.
• B)Decreasing the interest rates to encourage investment.
• C)Increasing the incentives to produce goods and services.
• D)Raising marginal tax rates to reduce aggregate demanD.Actions such as tax cuts and deregulation will increase AS,thereby leading to a reduction in inflation.

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Definitions:

Net Asset Value

The total value of a fund's assets minus its liabilities, often used in the context of mutual funds to represent the per-share/unit value of the fund.

Assessment Value

The dollar value assigned to a property for purposes of measuring applicable taxes or insurance premiums.

Investment Company

A business structure, such as a corporation or trust, dedicated to managing the combined investments of various investors in financial markets.

Front-end Loads

Charges or fees that are paid by investors at the time of purchasing shares of a mutual fund or an investment trust.