An Economist Proposes That the Best Remedy for a Decline

An economist proposes that the best remedy for a decline in productivity is to lower taxes. Why should this approach increase productivity?

A) Because it would direct government investment toward those segments of the economy that generate the most revenues
B) Because it would increase consumer confidence and lower demand for goods
C) Because it would decrease demand, which in turn would reduce the budget deficit and lower inflation
D) Because it would increase economic growth by reducing the amount of money chasing after a scarcity of goods
E) Because it would increase investment, which would in turn increase productivity and tax revenues