Supply-side economists argue that A) lower tax rates always ...

[anshika]

Supply-side economists argue that
 
  A) lower tax rates always lead to lower tax revenues.
  B) higher tax rates lead to increased productivity.
  C) lower tax rates sometimes lead to increased tax revenues.
  D) lower tax rates lead to a drop in real Gross Domestic Product (GDP).

Question 2

Which of the following statements about the budget deficit is TRUE?
 
  A) It is equal to the public debt. B) It is a stock variable.
  C) It is a flow variable. D) none of the above

[kjo;oj]

Answer to Question 1

C

Answer to Question 2

C