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:

Water Boils

The transformation of water from liquid to gas phase, occurring at 100°C (212°F) at sea level.

Hydrogen Ions

Positively charged atoms of hydrogen, which contribute to acidity when present in high concentrations in solutions.

Acids

Substances that release hydrogen ions (H+) when dissolved in water, typically having a sour taste and capable of turning blue litmus paper red.

Bases

Chemical substances that can accept hydrogen ions (H+) and are characterized by a pH greater than 7 when dissolved in water.