This topic contains a solution. Click here to go to the answer

Author Question: According to the supply-side view of fiscal policy, if the impact on tax revenues is the same, does ... (Read 74 times)

bobbysung

  • Hero Member
  • *****
  • Posts: 519
According to the supply-side view of fiscal policy, if the impact on tax revenues is the same, does it make any difference whether the government cuts taxes in a way that reduces marginal tax rates or in a way that does not reduce marginal tax rates?
 a. No; both actions will exert the same impact on aggregate supply and demand.
 b. Yes; only lower marginal tax rates will increase the incentive to earn income and thereby stimulate aggregate supply.
  c. No; in both cases people will increase their saving in the expectation of higher future taxes and thereby offset the stimulus effect of lower taxes.
  d. Yes; interest rates will increase if marginal tax rates are lowered, whereas they will tend to decrease if marginal tax rates are left unchanged.

Question 2

The Federal Reserve System was created in 1913, through the Federal Reserve Act, by the:
 a. U.S. President.
  b. Judiciary.
  c. Congress.
  d. International Monetary Fund.
  e. State governments.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

snackralk

  • Sr. Member
  • ****
  • Posts: 363
Answer to Question 1

b

Answer to Question 2

c




bobbysung

  • Member
  • Posts: 519
Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review


mammy1697

  • Member
  • Posts: 341
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

Elderly adults are living longer, and causes of death are shifting. At the same time, autopsy rates are at or near their lowest in history.

Did you know?

Liver spots have nothing whatsoever to do with the liver. They are a type of freckles commonly seen in older adults who have been out in the sun without sufficient sunscreen.

Did you know?

Everyone has one nostril that is larger than the other.

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

Did you know?

According to research, pregnant women tend to eat more if carrying a baby boy. Male fetuses may secrete a chemical that stimulates their mothers to step up her energy intake.

For a complete list of videos, visit our video library