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Which of the Following Is Not a Principle of Supply-Side

Question 117

Multiple Choice

Which of the following is not a principle of supply-side economics?


A) High marginal tax rates severely discourage work, saving, and investment.
B) Increases in social security taxes and other business taxes shift the aggregate supply curve leftward.
C) The Bank of Canada should adhere to a monetary rule which limits increases in the money supply to a fixed annual rate.
D) Transfer payments reduce incentives to work.

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