According to supply-side economics, a cut in taxes will affect total tax revenue, because ________.
A) the level of productivity should fall precipitously with a tax cut
B) a tax cut will be followed by an even larger decrease in government spending
C) of the resulting increase in saving
D) of the positive impact on the level of income
Question 2
Incentives matter and different groups of producers, consumers and politicians will support those policies that promise to advance those projects most advantageous to them. Which statement about opposition to or support for U.S.
tariff policy during the antebellum period is correct? (a) Producers in the South objected to tariffs placed on imported goods. They needed them at relatively low prices for their own production.
(b) Plantation owners supported a high tariff as protection against cheap cotton imports.
(c) Politicians wanted to protect jobs abroad as well as in the U.S. Therefore, they did not support U.S. tariff policies.
(d) All of the above are correct.
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