[Solved] If Tax Reduction and Simplification Are Effective, Then

Question 268
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If tax reduction and simplification are effective, then


A)real wages will rise as labour supply and demand increase.
B)saving and investment in new capital will increase.
C)interest rates will rise in financial markets and demand for financial assets will fall.
D)fewer new firms will be established, since existing firms will make more profit.
E)government revenue will increase.

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