The argument for reduction in the rate of taxation to promote economic activity rests on the following premises:
1. Lower taxes increase the amount of savings
2. Moderate taxes lead to lower prices
3. It promotes consumption
4. It increases government's revenue.

all four

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I only

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IV only

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I and III

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Solution

The correct option is D I and III
(d)

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The argument for reduction in the rate of taxation to promote economic activity rests on the following premises:1. Lower taxes increase the amount of savings2. Moderate taxes lead to lower prices3. It promotes consumption4. It increases government's revenue.

The correct option is D I and III(d)

The argument for reduction in the rate of taxation to promote economic activity rests on the following premises:
1. Lower taxes increase the amount of savings
2. Moderate taxes lead to lower prices
3. It promotes consumption
4. It increases government's revenue.

The correct option is D I and III
(d)