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A Supply-Side Economist Would Recommend a Cut in Marginal Tax

Question 61

Multiple Choice

A supply-side economist would recommend a cut in marginal tax rates on capital gains and on investment expenditures


A) When the economy is in a recession.
B) If government spending is cut by an equal amount.
C) If it is judged that the resulting deficit will not crowd out very much investment.
D) Regardless of the state of the economy or other policies.

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