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Which Statement Is False

Question 94

Multiple Choice

Which statement is false?


A) Politicians like supply-sider arguments because they can promise to cut taxes without reducing government services or going into debt.
B) Politicians who favour a hands-on role for government often use supply-sider arguments to support tax cuts.
C) All economists believe tax cuts have some incentives effects increasing aggregate supply.
D) Tax cuts affect aggregate demand and, to a lesser extent, aggregate supply.
E) There is no evidence to support the claims of supply-siders that tax cuts have large effects on aggregate supply.

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