Author Question: What is the central tenet of supply-side economics? A) Lowering tax rates will stimulate so much ... (Read 82 times)

fahad · **on:** Jul 9, 2018

What is the central tenet of supply-side economics?

A) Lowering tax rates will stimulate so much additional productive economic activity that the government will raise more in revenues than if tax rates were maintained at a higher level.
B) Modest adjustments can be made in the fiscal policy as long as the deficits never grow too large, and these adjustments will eventually pay off any budget shortfalls.
C) Progressive tax rates ensure that the economy is stimulated by the most productive elements of society and so all budget shortfalls will be paid off.
D) Large tax cuts coupled with increases in defense spending and continued high spending will eventually stimulate a flagging economy to generate surplus revenue.
E) Unexpected economic growth can be managed by offering large tax cuts and increased defense spending.

Question 2

By choosing a candidate whose views are unknown, presidents can avoid

A) filibustering. B) borking. C) reversal. D) remand. E) errors.