Which of the following statements is NOT part of supply-side theory?
A) Income taxes reduce the after-tax reward to work and saving.
B) Capital gains should be indexed so that only real gains, and not nominal gains, are taxed.
C) An increase in the after-tax reward to work and saving would create a significant increase in the amount of work and saving.
D) After cutting taxes, the federal government would collect more revenue than before the tax cuts.
Correct Answer:
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