During the 1920s the republicans, especially president coolidge, felt that this policy would lead to new industrial enterprises.
a farm subsidies
c. tax cuts
b. tax increases
d. international investment
select the best answer from the choices provided
vity

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.