Which of the Following Conclusions About Supply-Side Tax Initiatives Is

Multiple Choice

Which of the following conclusions about supply-side tax initiatives is accepted by most economists?

A) Supply-side tax cuts are likely to benefit the poor as much as the rich.
B) Supply-side tax cuts will almost certainly lead to smaller budget deficits.
C) Such tax cuts probably will increase aggregate supply quickly, but an increase in aggregate demand will come later.
D) Tax reductions aimed at stimulating business investment are likely to have a greater impact than tax reductions aimed at getting people to work longer hours or save more.