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AP® Macroeconomics

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Moderate

Supply-Side Policy Considerations

APMACR-ANY3JK

Which of the following is NOT a supporting argument for supply-side fiscal policy?

A

Work Incentives increase under supply-side fiscal policy approach.

B

Savings and Investment increase under supply-side fiscal policies.

C

Risk-takers are encouraged.

D

Tax reductions on business increase profitability of investments.

E

Deficit spending is not as likely.