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CFA Level 1 Exam

3959 Questions

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Question No. 1

Congress proposes to stimulate the economy by cutting taxes for middle income families but raising taxes for wealthier tax payers. The effect will be the same net taxes collected, but most tax payers would pay less in taxes. According to which of the following economic theories would this stimulate the economy?

I. fiscal policy
II. supply-side
III. monetary policy
Choose the correct option from the given list.
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