Supply-side economics is the idea that
A) the best method of producing high levels of economic growth is to engage in high levels of government spending.
B) the government should impose heavy tariffs on imported goods in order to protect domestic suppliers.
C) the government's role in the economy should be strictly limited to regulating the supply of money.
D) increasing the marginal rate of taxation will create a productive economy by providing more revenue to finance government economic programs.
E) reducing the marginal rate of taxation will create a productive economy by promoting levels of work and investment that would otherwise be discouraged by higher taxes.
Correct Answer:
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