Supply-Side Tax Cuts Designed to Increase Investment Spending Are Attractive

Multiple Choice

Supply-side tax cuts designed to increase investment spending are attractive in theory, but in practice

A) the effect is the opposite of what theory suggests.
B) are less useful, because they take a long time to increase the capital stock.
C) they have no effect on the capital stock in the short or long run.
D) are powerful in the short run as capital stock rapidly increases, but the effect tapers off in the long run.