Author Question: According to the theory of supply-side economics, a cut in the tax rate will actually result in an ... (Read 47 times)

codyclark · **on:** Jul 13, 2018

According to the theory of supply-side economics, a cut in the tax rate will actually result in an increase rather than a decrease in tax revenues. Which statement best explains how this is supposed to happen?

a. Lower tax rates encourage greater investment, leading to economic growth that contributes to a higher tax base.
b. High tax rates stimulate government spending, which overheats the economy and brings on an economic downturn.
c. High tax rates give the government too much ability to pass and enforce regulations that are burdensome on the private sector.
d. Lower tax rates reduce bureaucratic intervention in the economy, allowing both consumers and producers to keep more of their own money.

Question 2

Which of the following groups has the lowest voter turnout rates in America today?

a. Latinos
b. African-Americans
c. women
d. Christians