CFA Practice Question

There are 341 practice questions for this study session.

CFA Practice Question

A tax cut reduces the amount of money that taxpayers owe the government and frees up money for personal spending. This can cause a ______.

A. demand shock
B. supply shock
C. tax shock
Correct Answer: A

This money is then used by taxpayers to consume certain products and services, which bids up their prices.

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