Author Question: A study by Edward Prescott found that the ________ marginal tax rates in the United States relative ... (Read 90 times)

lilldybug07

  • Hero Member
  • *****
  • Posts: 546
A study by Edward Prescott found that the ________ marginal tax rates in the United States relative to Europe resulted in a ________ quantity of labor supplied in the United States.
 
  A) higher; smaller B) lower; smaller C) lower; larger D) higher; larger

Question 2

If tax reduction and simplification are effective, then
 
  A) fewer new firms will be established, since existing firms will make more profit.
  B) saving and investment in new capital will increase.
  C) interest rates will rise in financial markets and demand for financial assets falls.
  D) real wages will rise as labor supply and demand increase.



asware1

  • Sr. Member
  • ****
  • Posts: 318
Answer to Question 1

C

Answer to Question 2

B



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Adolescents often feel clumsy during puberty because during this time of development, their hands and feet grow faster than their arms and legs do. The body is therefore out of proportion. One out of five adolescents actually experiences growing pains during this period.

Did you know?

Eat fiber! A diet high in fiber can help lower cholesterol levels by as much as 10%.

Did you know?

A good example of polar molecules can be understood when trying to make a cake. If water and oil are required, they will not mix together. If you put them into a measuring cup, the oil will rise to the top while the water remains on the bottom.

Did you know?

Less than one of every three adults with high LDL cholesterol has the condition under control. Only 48.1% with the condition are being treated for it.

Did you know?

The term pharmacology is derived from the Greek words pharmakon("claim, medicine, poison, or remedy") and logos ("study").

For a complete list of videos, visit our video library