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.

---

Definitions:

Employees

Individuals who are hired by an organization to perform specific duties and responsibilities in exchange for compensation.

Fragmented Cultures

Cultures within an organization that are varied and diverse, often lacking a unified set of norms or beliefs.

Making Money

The process of earning financial returns or profits, typically through business, investments, or employment.

Top Priority

Refers to the most important issue, task, or objective that requires immediate attention and resources above all others.