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What assumption is made with supply-side economics? A. Increased federal spending will slow inflation, bringing prices down. B. Tax cuts will stimulate the economy, eventually bringing in more tax revenue. C. Tax cuts will slow inflation, keeping prices down. D. Increased federal spending will stimulate the economy, bringing in more tax revenue.

William Cain

in History

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Timothy Norman on February 9, 2018

Option correct answer is:B. Tax cuts will stimulate the economy, eventually bring in more tax revenue.____________________________________________________________Explanation:the Supply side of the economy imply that flatter tax rates increase financial growth through the provision of people's motivations to serve, save and spend more. A crucial assumption of this approach is that provide the tax forms for the high-income people generates more economic interests with the granting of tax reductions to lower income of the population.

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