A tax cut designed to encourage investment and stimulate economic growth
a. must be matched by a cut in government spending in order to be effective
b. must be matched with tax increases in other areas, or with a cut in government spending, if crowding out is to be avoided
c. will only work if it decreases the size of the budget deficit
d. can only be effective if the tax burden is redistributed or government spending is cut
e. will only work if it is a cut in the capital gains tax
B
Economics
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All of the following were classical economists EXCEPT
A) Adam Smith B) A. C. Pigou C) David Ricardo D) John Maynard Keynes.
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The average tax rate is defined as
A) total tax due/change in taxable income. B) total tax due/total taxable income. C) change in taxes due/change in taxable income. D) change in taxes due/total taxable income.
Economics