According to trickle-down economics, which of the these increases economic growth?
A) a decrease in taxes for investors
B) a decrease in the demand for goods
C) an increase in capital gains taxes
D) an increase in government regulation
According to trickle-down economics, a decrease in taxes for investors increases economic growth.
Explanation:
A decrease in taxes for investors is the reason for the increase in economic growth.
Trickle-down economics, also known as trickle-down theory, refers to the economic principle that taxes on corporations and the wealthiest in society should be lowered as a way of encouraging short-term corporate activity and long-term benefits for society at large.
Supporters of supply-side economic policies such as "Reaganomics" have used the concept in recent times.
