MCQOPTIONS
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MCQOPTIONS
| 1. |
Which of the following statements is true about |
| A. | The main change made by the tax laws of 1981 and 1986 was to increase marginal tax rates in order to balance the budget |
| B. | The Laffer Curve says that, if marginal tax rates fall, tax revenues will rise, and the budget deficit will decrease |
| C. | If the tax laws of 1981 and 1986 had had their intended effect, consumption would have risen, causing an increase in both real GDP and in the price level |
| D. | All of these |
| Answer» C. If the tax laws of 1981 and 1986 had had their intended effect, consumption would have risen, causing an increase in both real GDP and in the price level | |