Supply-side economists would say that tax rates are generally

A) at the level 0F.
B) at some level below 0F.
C) at some level above 0F.
D) such that an increase in tax rates will increase tax revenue.

Question

Supply-side economists would say that tax rates are generallyA) at the level 0F.B) at some level below 0F.C) at some level above 0F.D) such that an increase in tax rates will increase tax revenue.

Alison Sawyer · Accepted Answer

Final Answer : C, Explanation :  Supply-side economists argue that reducing tax rates can increase incentives for work, investment, and innovation, which can stimulate economic growth and actually increase tax revenue in the long run. Therefore, they would say that tax rates are generally too high and should be lowered to increase economic efficiency and growth.

Supply-side economists would say that tax rates are generally

A) at the level 0F.
B) at some level below 0F.
C) at some level above 0F.
D) such that an increase in tax rates will increase tax revenue.

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