President Reagan believed that the tax cuts of 1981 would stimulate the economy because the
a. marginal tax rates were too high, causing production costs to be too high, curbing production
b. marginal tax rates were too high, causing production to be curbed by lack of demand
c. marginal tax rates were too high, creating a disincentive effect on production
d. marginal tax rates were too low, causing government revenues to fall, creating deficit spending and crowding out
e. marginal tax rates were too low, causing government revenues to rise, creating surpluses that curbed overall production
C
You might also like to view...
If you are currently producing at a level where average fixed cost and average variable cost are the same, your average total cost has been minimized
Indicate whether the statement is true or false
Accurately incorporating the present consequences of an action, but ignoring or underestimating the future consequences, is a description of present bias.
Answer the following statement true (T) or false (F)