One Argument for Tax Cuts When the Government Is Running

Multiple Choice

One argument for tax cuts when the government is running a budget deficit is that lower

A) tax revenue will reduce the budget deficit.
B) marginal tax rates will incentivize employers to hire more workers.
C) corporate tax rates will incentivize people to work and thus increase the overall tax revenue.
D) marginal tax rates will incentivize people to work and thus increase the overall tax revenue.
E) marginal tax rates will decrease aggregate supply.