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The rate of unemployment has risen for the past five years. Some economists assert that the best way to combat this trend is to reduce capital gains taxes.
Which of the following, if true, would most weaken the arguement?
A. Reductions in capital gains taxes have been shown to stimulate investment.
B. The additional corporate profits which result from reduced capital gains taxes are usually distributed as stock dividends.
C. Reductions in personal income taxes have been shown to have a positive effect on the rate of saving.
D. Major government investments in infrastructure projects reduce unemployment rates.
E. The loss of tax revenue which would result from a cut in capital gains taxes offsets any gain from reduced unemployment benefit payments.
[spoiler]OA: B[/spoiler]
Which of the following, if true, would most weaken the arguement?
A. Reductions in capital gains taxes have been shown to stimulate investment.
B. The additional corporate profits which result from reduced capital gains taxes are usually distributed as stock dividends.
C. Reductions in personal income taxes have been shown to have a positive effect on the rate of saving.
D. Major government investments in infrastructure projects reduce unemployment rates.
E. The loss of tax revenue which would result from a cut in capital gains taxes offsets any gain from reduced unemployment benefit payments.
[spoiler]OA: B[/spoiler]
"There is nothing either good or bad - but thinking makes it so" - Shakespeare.
