Question

During the 1920s the Republicans, especially President Coolidge, felt that this policy would lead to new industrial enterprises.

Answer 1

Answer:

Tax cuts  policy would lead to new industrial enterprises.

Option: (C)

Explanation:

• During the 1920s, the US president Calvin Coolidge supported the policy of cutting down the high taxes imposed on the citizens during World War I.

• These taxes were quite a burden on the citizens, and due to this, the taxpaying base was reduced abnormally, and about 98% of the population didn't pay any tax.

• The Coolidge administration reduced these taxes at a much lower rate, and due to this the US tax base increased and led to rapid economic growth.

• This reduction in taxes also led to new industrial enterprises in the US economy. Therefore, tax cuts is correct.