Ronald Reagan's supply side economic advisers assured him that the combination of budgetary discipline and tax reduction would do all of the following except

Question

Quizplus · Accepted Answer

Supply side economists argued that tax cuts would stimulate economic growth, increase productivity and encourage investment, which would eventually lead to an increase in tax revenues. However, this prediction did not always come true and tax cuts did not always lead to an increase in tax revenues. In fact, it often resulted in lower overall tax revenues for the federal government, which in turn contributed to an increase in the federal budget deficit. Thus, option B is the correct answer.

Ronald Reagan's Supply Side Economic Advisers Assured Him That the Combination