Which of the Following Is Not a Principle of Supply-Side

question 48

Multiple Choice

Which of the following is not a principle 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 leftward.
• C)The Bank of Canada should adhere to a monetary rule which limits increases in the money supply to a fixed annual rate.
• D)Transfer payments reduce incentives to work.

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