Which of the following is a tenet of supply-side economics?
A. High marginal tax rates severely discourage work, saving, and investment.
B. Increases in social security taxes and other business taxes shift the aggregate supply
curve to the right.
C. The Federal Reserve should adhere to a monetary rule that limits increases in the money
supply to a 5 percent annual rate.
D. Transfer payments increase incentives to work.
A. High marginal tax rates severely discourage work, saving, and investment.
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In an oligopoly market, the Herfindahl-Hirschman Index is usually
A) greater than 2,500. B) below 1,000. C) between 100 and 1,000. D) between 200 and 2,000.
From 2004 to 2006, the European Union budget was ________, private saving was ________ domestic investment, and foreign lending ________
A) balanced, roughly equal to, negligible B) balanced, less than, substantial. C) surplus, greater than, negligible D) in deficit, greater than, negligible