One Significant Problem with the Implementation of Supply-Side Economic Policies

Multiple Choice

One significant problem with the implementation of supply-side economic policies under both Reagan and George W. Bush was that

A) government spending was allowed to increase despite declines in government revenues.
B) promised tax cuts were never delivered, leading to a decline in consumer confidence.
C) decreased government spending lowered the demand for goods, offsetting the effect of tax rebates.
D) the American people are not generally supportive of lowering taxes.
E) the federal deficit was allowed to drop too low, resulting in an inflationary economy.