10.___ is a proposition that a strong proponent of supply side economics most likely stress.

A.Higher marginal tax rates will lead to a reduction in the size of the budget do lower interest rates as they depend on government revenue.

B.Higher marginal tax rates promote economic inefficiency and thereby retard output a they encourage investor to undertake low productivity project substantial tax shelter benefits.

C.income redistribution payments will exert little impact on real aggregate su they do not consume resources directly.

D. a tax reduction will incease the disposable income of households, and thus primary impact of a tax reduction on aggregate supply will stem front influence of the tax change on the size of the budget deficit or surplus.

E. None of the above is a likely statement for a supply-side propnent.

11.which of the following statement is FALSE regarding the impact of making market?

A. A ccording t othe traditional thehory , higher-than- expected inflation shouldl lower stock prices because monetray policy action to counteract higher is depress economic activities.

B. the moneytary approach to exchange rate determination asserts that a industrial production will lead to an increrase in US real income. thereby supply of the us dollar, which, inturn, leads to a depreciation of the us.

C.higher-than-expected interet rate reduce the presetnt value of experience dividence, thereby reducing stock prices.

D.an improvement of the us terms of trade can increase the capital turn, incrases marginal product of factors thereby appreciating the us

E. non of the above