Which one of the following propositions would a p proponent of supply-side economics be most likely to stress()
A. Higher marginal tax rates will lead to a reduction in the size of the budget deficit and lower interest rates, since they expand government revenues.
B. Higher marginal tax rates promote economic inefficiency and thereby retard aggregate output, since they encourage investors to undertake low productivity projects with substantial tax-shelter benefits.
C. Income redistribution payments will exert little impact on real aggregate supply, since they do not consume resources directly.