Question

question 8 of 10

supporters believed the bush tax cuts would:

a. increase income inequality
b. increase the national debt
c. promote economic growth
d. benefit high-income earners

Explanation:

Analyze the perspective of supporters

Supporters of the Bush tax cuts (2001 and 2003) argued from a supply-side economic perspective, asserting that lowering tax rates would incentivize investment, increase consumer spending, and ultimately stimulate and promote economic growth.

Evaluate the options

• A, B, and D represent criticisms or projected negative outcomes of the tax cuts raised by opponents (increasing inequality, growing the national debt, and disproportionately benefiting high-income earners).
• C represents the primary positive outcome intended and believed by the supporters of the policy.

Answer:

• (A) increase income inequality
• (B) increase the national debt
• (C) promote economic growth (Correct answer)
• (D) benefit high-income earners