Most economists have reached the following conclusion about supply-side economics.
A. Supply-side tax cuts are likely to reduce income inequality.
B. Supply-side tax cuts are almost certain to lead to smaller budget deficits.
C. Supply-side tax cuts are likely to widen income inequality.
D. None of these.
Answer: C
Economics
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In a country without foreign trade and income taxes, if the government decreases autonomous spending and autonomous taxes by 50 then total expenditures and output will
A) increase by 50 if the MPC is 1. B) decrease by 50 for any value of the MPS greater than zero. C) decrease by 100 if the MPS is 0.5. D) increase by 200 if the MPS is 0.25.
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In recent years, redistribution has been the fastest growing category of federal government outlays
a. True b. False
Economics