Most economists believe that a cut in tax rates ___________.

A. would generally decrease government tax revenue.
B. would have some positive effect on aggregate demand.
C. has a relatively small effect on

Respuesta :

Answer:

The correct answer is (B)

Explanation:

Tax is applied to decrease the budget deficit, as it helps to improve the government's revenue. Overall, a cut in tax rates has many benefits on the general economy, such as an increase in demand, and a decrease in inflation. Most economists believe that a cut in tax rates will positively affect the aggregate demand due to a decrease in overall prices of goods and services.