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Which of the Following Beliefs Is Not Part of Supply-Side

Question 15

Multiple Choice

Which of the following beliefs is not part of supply-side economics?


A) A sharp reduction in personal income taxes would bring forth higher labor-force participation.
B) A sharp reduction in personal income taxes would bring forth a higher capital stock through greater saving and investment.
C) A reduction in tax rates would lead to increased output and actually allow tax revenues to rise.
D) A sharp reduction in corporate income taxes would discourage U.S. corporations from shifting their production facilities to other countries, thus leading to a decrease in the unemployment rate.

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