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Question 3 3 Supply - side economists argue that reductions in marginal tax rates can: increase incentives to work, save, and invest shift aggregate demand
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Supplyside economists argue that reductions in marginal tax rates can:
increase incentives to work, save, and invest
shift aggregate demand to the left to reduce inflationary pressures.
crowd out private sector borrowing and spending.
reduce the impact of the multiplier and therefore destabilize the economy
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