Question
Which statement best describes supply-side economics?
A) Tax increases encourage borrowing from banks, which leads to greater purchasing power.
B) Tax cuts give more money to investors and consumers, which leads to overall economic growth.
C) The government establishes production goals for businesses, which leads to higher-priced goods.
D) The government increases revenue to offset federal and state spending, which leads to a balanced budget.
Asked By PhoenixRising65 at
Answered By Expert
Walter
Expert · 2.1k answers · 2k people helped
The statement best describes supply-side economics is: Tax cuts give more money to investors and consumers, which leads to overall economic growth. The correct option is B.
Supply-side economics, also known as "trickle-down economics" or "Reaganomics," is an economic theory that emphasizes the import
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