Most economists seem to agree that cutting taxes
a. on saving has more impact than cutting taxes to increase investment.
b. to stimulate investment is more effective than cutting taxes to stimulate work.
c. to increase work is more effective than cutting taxes to stimulate investment.
d. to increase work incentives is more effective than cutting taxes on saving.
b
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If a firm offers a senior citizen discount,
A) the firm expects the average senior citizen to have a lower price elasticity of demand. B) the firm expects the average senior citizen to have a higher price elasticity of demand. C) senior citizens may be offended. D) it may be prosecuted for discrimination.
Perfect (first degree) price discrimination:
a. is a common occurrence in situations with many buyers. b. occurs fairly often in situations with only a few buyers. c. is only observed in competitive markets. d. rarely occurs because firms do not have sufficient information to differentiate among specific buyers.