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Which Combination of Government Policies Would Be Most Likely Increase

Question 38

Multiple Choice

Which combination of government policies would be most likely increase labor demand?


A) Increasing subsidies to education and increasing subsidies to businesses for hiring new employees
B) Reducing income tax rates and cutting transfer payments to the needy
C) Raising income tax rates and cutting transfer payments to the needy
D) Reducing subsidies to education and increasing subsidies to businesses for hiring new employees
E) Increasing subsidies to education and reducing subsidies to businesses for hiring new employees

Correct Answer:

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