Question

The Republican administrations of the 1920s pursued the economic policy of Group of answer choices substantially reducing taxes encouraging companies to compete rather than cooperate in any way advocating that manufacturers be allowed to fix prices increasing federal expenditures creating policies that aided the plight of the poor

Answer 1

Answer:

The Republican administrations of the 1920s pursued the economic policy of substantially reducing taxes

Explanation:

The Republican administration led by President Warren G Harding and Vice President Calvin Coolidge upon taking office in 1920 instituted and introduced conservative economic policies designed to minimize the government's role in the economy and reduce d taxes. Secretary of the Treasury, Andrew Mellon engineered and won passage of the "Revenue Act of 1921", a major tax cut that substantially reduced tax rate on the wealthy.

The changes in the marginal income tax rates caused individuals and business alike to change their behaviour. The tax rate cuts cause the tax base to expand as tax avoidance falls and the economy grows.