One Part of the Supply-Side Argument Is That

question 154

Multiple Choice

One part of the supply-side argument is that

• A) lower marginal tax rates are required to induce Congress to reduce government spending.
• B) lower marginal tax rates can increase total tax revenues.
• C) the marginal tax rate should be set at 50 percent.
• D) the relevant aggregate supply curve is close to horizontal.

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Definitions:

Free Speech

The right to express any opinions without censorship or restraint.

Privatization

The process of transferring ownership of a business, enterprise, agency, public service, or public property from the government to private individuals or organizations.

International Businesses

Companies that conduct commerce across national borders, engaging in international trade or investment.

Privatization

The transfer of ownership and management of enterprises from the public sector (government) to private individuals or organizations.