Cummins, Hubbard, and Hassett studied the effects of taxes on investment by

Cummins, Hubbard, and Hassett studied the effects of taxes on investment by 



(a) seeing if investment spending is correlated with taxes on investment.
(b) examining what happened to investment when major tax reforms took place.
(c) raising tax rates on certain businesses and testing their reaction.
(d) raising tax rates on equipment and reducing tax rates on structures.



Answer: B


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