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:

General Partnership

A business structure where two or more partners share unlimited liability for the debts and obligations of the business.

RUPA

The Revised Uniform Partnership Act, which is a modern guide for the governance of partnerships, aiming to harmonize and modernize partnership law.

Profits Earned

The monetary gains made by a business after accounting for all expenses, indicating the financial success of business operations.

Gross Negligence

A severe form of negligence that shows a blatant disregard or indifference to the duty of care owed to others.