If Tax Reduction and Simplification Are Effective,then

question 276

Multiple Choice

If tax reduction and simplification are effective,then

• A)real wages will rise as labor 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 falls.
• D)fewer new firms will be established,since existing firms will make more profit.

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Definitions:

Cultural Traditions

The shared beliefs, practices, norms, values, and objects that are passed down within a society from generation to generation, shaping the identity and behavior of its members.

Major Depression

A mental disorder characterized by a persistent and severe low mood that is accompanied by low self-esteem and by a loss of interest or pleasure in normally enjoyable activities.

Women

Adult human females, often discussed in contexts involving gender-specific issues, rights, and contributions to society.

Men

Adult human males.