In the Long Run

question 96

Multiple Choice

In the long run,

• A) the government's tax policies do not affect the rate of investment spending.
• B) lower tax rates will have no effect on the average standard of living.
• C) lower tax rates will lead to faster growth in the average standard of living.
• D) higher tax rates will lead to slower growth in the average standard of living.
• E) the debt and the deficit will converge to zero.

---

Definitions:

Disposal Cost

Expenses associated with getting rid of waste materials or unwanted products.

Corporate Responsibility

An approach by businesses to contribute to societal goals of a philanthropic, activist, or charitable nature by engaging in or supporting volunteering or ethically-oriented practices.

Plastic Straws

Thin tubes made of plastic intended for transferring liquids from a container to the mouth of a person; associated with environmental concerns.

Raw Materials

The basic substances from which products are manufactured or made.