A proponent of supply-side economics would be most likely to stress that:
A) high marginal tax rates would lead to a reduction in the budget deficit and lower interest rates in an economy
B) high marginal tax rates would promote economic inefficiency and decrease aggregate output in an economy.
C) income redistribution payments would have little impact on real aggregate supply in an economy.
D) a tax reduction would reduce incentives to work and invest in an economy.
E) government purchases rather than tax cuts would be better suited to stimulate aggregate demand in an economy
Correct Answer:
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