________ is a proposition that a strong proponent of supply-side economics would most likely stress.

Question

Quizplus · Accepted Answer

A strong proponent of supply-side economics would stress that higher marginal tax rates promote economic inefficiency and discourage investment in high productivity projects. Therefore, reducing taxes on businesses and individuals would lead to increased investment and economic growth. This is consistent with the belief that lower taxes can increase aggregate supply and stimulate economic activity. Option A is not consistent with the supply-side view as it suggests that higher tax rates could help reduce the budget deficit and lower interest rates, which are viewed as being more closely related to monetary rather than fiscal policy. Option C is not related to supply-side economics since it refers to income redistribution payments that would typically be associated with demand-side policies. Option D is also not consistent with the supply-side view, as it implies that the primary impact of a tax reduction on aggregate supply would be through its effect on the budget deficit or surplus.

________ Is a Proposition That a Strong Proponent of Supply-Side