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Suppose Two Economists Disagree About Whether a Particular Tax Cut

Question 39

Multiple Choice

Suppose two economists disagree about whether a particular tax cut is a good policy. The economist supporting the cut believes that it will increase economic growth. The other economist opposes it because he thinks it will have no effect on growth. The source of their disagreement in this case is most likely due to different:


A) value judgments.
B) interpretations of empirical evidence.
C) interpretation of Pareto optimality.
D) levels of coldheartedness.

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