One argument for tax cuts when the government is running a budget deficit is:
A) that lower tax revenue will reduce the budget deficit.
B) that lower marginal tax rates will incentivize employers to hire more workers.
C) that lower corporate tax rates will incentivize people to work and thus increase the overall tax revenue.
D) that lower marginal tax rates will incentivize people to work and thus increase the overall tax revenue.
E) that lower marginal tax rates will decrease aggregate supply.
Correct Answer:
Verified
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