Supply-side economists contend that the system of taxation in the United States
A) creates incentives to save and invest.
B) creates disincentives to work.
C) generates maximum tax revenue.
D) reduces the effects of cost-push inﬂation.

Question

Quizplus · Accepted Answer

Supply-side economists argue that high taxes reduce the incentive to work, save, and invest, which can slow economic growth.

Supply-Side Economists Contend That the System of Taxation in the United