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notka56 [123]
3 years ago
8

How did Wilson compensate for the reduced government income resulting from his lowering of tariffs?

History
2 answers:
-BARSIC- [3]3 years ago
8 0
He created an income tax! name this brainliest if it helped!
Anni [7]3 years ago
5 0

Answer:

Among options, B is the answer.

Explanation:

A. cutting government expenses

<h2><em>B. creating an income tax</em></h2>

C. taxing businesses

D. charging federal interest on loans.

The Revenue Act of 1913 was aimed to reestablished a federal income tax. President Wilson wanted to change high tariffs to lower ones for consumers.

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The correct answer is A.

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On the other hand, a shortage is caused due to a temporary unbalance in a market, specifically when the quantity demanded by consumers exceeds the quantity supplied by the companies operating on it. The result is that some customers will not be able to buy the product they wanted and that the firms could have made higher profits in they had organized better. Due to this temporary misadjustment, prices of the product will go up and less people would demand the product once it has become more expensive. In the end, market forces will reestablish the equilibrium, where the amounts supplied and demanded are equal.

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