The supply- side effects of a cut in tax rates include _ in the supply of labour and _ in the supply of loanable funds.

Name: The supply- side effects of a cut in tax rates include _ in the supply of labour and _ in the supply of loanable funds.
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Question

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A cut in tax rates can incentivize individuals to work more, thus increasing the supply of labor. Similarly, lower taxes can lead to higher disposable income, which can increase savings and thus the supply of loanable funds.

The Supply- Side Effects of a Cut in Tax Rates