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.

---

Definitions:

Modeling

The process of emulating or imitating behaviors, attitudes, or techniques demonstrated by others as a way of learning or teaching.

Demonstrating Behaviors

The act of showing or exemplifying specific actions or behaviors in order to teach, persuade, or model them to others.

Particular Situation

A specific set of circumstances or context in which events occur or decisions are made.

Family Background

The social, economic, cultural, and educational context from which an individual comes, influencing their development and opportunities.