1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
aleksklad [387]
3 years ago
12

During the Reagan administration, the Laffer curve was used to argue that: a. lower income tax rates could increase tax revenues

. b. the supply-side effects of tax cuts are relatively small. c. a "flat tax" would simplify the tax code and stimulate economic growth. d. discretionary tax cuts are unwise because they create stagflation.
Business
1 answer:
solniwko [45]3 years ago
6 0

Answer:

A) lower income tax rates could increase tax revenues.

Explanation:

The laffer curve is a theoretical model which argues that there a tax rate that theoretically produces the most revenue for the government. Said tax rate is between 0% and 100%.

President Reagan used this model to argue that a lower tax rate would actually increase government revenue. The logic behind this claim was that lower tax rates increases both public and private saving, which in turn increases investment, resulting in more economic growth, and more taxable income.

The validity of these claims is dispute and is subject to debate among economists.

You might be interested in
VI. Here we consider the paradox of saving one last time in the context of the AS-AD model. Suppose the economy begins with outp
Nonamiya [84]

Answer:

The solution to this question can be defined as follows:

Explanation:

In point a:

When consumer interest decreases, => consumers begin and save less and more, => MPC decreases; => the "IS" curve becomes flatter; => "IS" turns inside. Currently, 'AD' shows together all the goods and financial sector, => as the 'IS' curve adjusts inside the industry, => the 'AD' would also change to the left.

In point b:

Take into account the SR models of "IS-LM" and "AD-AS." 

Therefore there is the case of a full job only at the beginning; => its optimum between "IS1" and "LM" in the "IS-LM" model; as well as the main equilibrium among "AD1" and "AS" in the "AD-AS" model "E1'," => the original equilibrium among "Y=Yf," "r=r1" and "P=P1." That now the consumer is reducing the confidence, => the 'IS' curve becomes shifting IMEI 'IS2,' => provided the 'LM' curve, that new balance is 'E2.' That's why the price in the SR is calculated, the AS will change =>, however, the AD also will shift the "AD2" side and "E2'" will become the equilibrium point in the "AD-AS" system, "r=r2 <r1" and "P=P1" throughout the new "Y=Y2 <Yf" balance.

Please find the graph file in the attachment.

6 0
2 years ago
Assume that locating a cement factory in the middle of Boston would save the producer $5 million at a public expense, in polluti
never [62]

Answer:

$5 million

Explanation:

If we follow the Coase Theorem, the appropriate solution to this case should be obtained regardless of initial rights. In this case, the factory saves $5 million to the producer, but it costs $10 million to Boston residents. if Boston residents pay $5 million or more to the factory owner, then both would benefit. Boston residents will gain $10 - $5 = $5 million, as well as the factory owner.

7 0
2 years ago
According to the video, what are some qualities that Special Education Teachers need? Check all that apply. driving skills art s
Sever21 [200]

Answer:

3,4,5 hope this help:)

Explanation:

4 0
2 years ago
Read 2 more answers
Ben receives an email purporting to be from his bank, advising him that new passwords are being distributed. The email asks him
Nina [5.8K]

Answer:

The correct answer is E

Explanation:

Phishing is the term which is defined as group of individual or the malicious individual who are scam users. This is done by sending the emails or creating the web pages which are designed in order to collect the information of online bank, other login information or credit card information of an individual.

So, Ben is the victim of phishing, as the fraud is done with him by sending the emails.

3 0
3 years ago
In mary poppins, what animal was on the end of mary poppins' umbrella that spoke?
galina1969 [7]
Pretty sure it was a parrot.
5 0
3 years ago
Other questions:
  • On December 31, 2015, Coolwear Inc. had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $43,000 and
    11·1 answer
  • Kahneman and Tversky used experiments to examine how people actually make decisions about risk. The researchers found a multi-st
    14·1 answer
  • You are trying to decide whether to repaint your house or install vinyl siding. The vinyl siding will cost $13,000 today and wil
    15·1 answer
  • A federal bank examiner came to a bank in Jacksonville. He audited the books and he checked out the staff and the office facilit
    9·1 answer
  • When parking parallel, it is best to leave the curbside wheels:?
    10·1 answer
  • Sunbird Theatre Inc. owns and operates movie theaters throughout Florida and Georgia. Sunbird Theatre Inc. has declared the foll
    6·1 answer
  • New parents express concern that, because of the mother’s emergency cesarean birth under general anesthesia, they did not have t
    6·1 answer
  • Exercise 4-11 Computing net sales for multiple-step income statement LO P4 A company reports the following sales-related informa
    14·1 answer
  • Three individuals, Mary, Jack and Helen, make up the total demand for donuts per month in a particular market.
    9·1 answer
  • Someone who enjoys the benefits of a good or service without paying any of the costs is referred to by economists as a _________
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!