One significant problem with the implementation of supply-side economic policies under both Reagan and George W. Bush was that
A. the federal deficit was allowed to drop too low, resulting in an inflationary economy.
B. decreased government spending lowered the demand for goods, offsetting the effect of tax rebates.
C. government spending was allowed to increase despite declines in government revenues.
D. promised tax cuts were never delivered, leading to a decline in consumer confidence.
E. the American people are not generally supportive of lowering taxes.
Answer: C
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