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According to supply-side economics, a decrease in capital gains tax rates will have which of the following effects? It encourages private saving and increase the

According to supply-side economics, adecreasein capital gains tax rates will have which of the following effects?

  1. It encourages private saving and increase the supply of loanable funds.
  2. It increases investment in capital.
  3. It raises potential GDP.

Group of answer choices

1, 2, and 3

1 and 2

1 and 3

2 and 3

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