A) A tax cut will raise interest rates. Question four from Abel, chapter one, analytical problems Which of the following statements are positive in nature and which are normative? A) A tax cut will raise interest rates. B) A reduction in the payroll tax would primarily benefit poor and middle class workers. C) Payroll taxes are too high. D) A cut in the payroll tax would improve the President”s popularity ratings. E) Payroll taxes should not be cut unless capital gains taxes are cut also.
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