Supply-side tax cuts are more likely to have the intended beneficial effect on
A)budget deficits.
B)consumer spending.
C)investment spending.
D)net exports.

Question

Quizplus · Accepted Answer

Supply-side tax cuts focus on reducing tax rates for businesses and individuals, which is expected to incentivize investment spending and promote economic growth. This could lead to businesses investing more in expansion and hiring, ultimately leading to higher levels of economic activity and potential long-term benefits for budget deficits. However, it is not directly aimed at boosting consumer spending or net exports, which are still subject to other factors such as consumer confidence and international demand for goods and services.

Supply-Side Tax Cuts Are More Likely to Have the Intended