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Other Things Constant,an Increase in Marginal Tax Rates Will

Question 137

Multiple Choice

Other things constant,an increase in marginal tax rates will


A) decrease the supply of labor and reduce its productive efficiency.
B) decrease the supply of capital and decrease its productive efficiency.
C) encourage individuals to buy goods that are tax deductible instead of those that are more desired but nondeductible.
D) do all of the above.

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