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What Is the Primary Benefit of Taxes with Regard to Economic

Question 136

Multiple Choice

What is the primary benefit of taxes with regard to economic growth?


A) Taxes make the economy fairer by redistributing income from the rich to the poor.
B) Taxes improve the efficiency of markets by changing producer decisions.
C) Taxes increase worker productivity by increasing the amount of work one needs to do.
D) Taxes provide the revenue to pay for government services.
E) Taxes create stable price levels,which incentivizes investment.

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