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marginal tax rates and _ are commonly used to increase aggregate supply. A) Lowering; increasing government transfer payments

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9) Select B. This is a part of supply side policies that are aimed at raising the incentive for work that increases productivity of labor and capital. Lowering tax rate encourages workers to work more and investment tax credit raises capital usage

10) Select C. Depreciation is a method of reducing the value of capital overtime which helps in reducing the taxes

11) Select A. 40% tax rate is the one that maximizes revenue from such tax. Hence this is the optimum tax rate the government should look for

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