ECONOMICS
FEDERAL RESERVE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Raising taxes on businesses
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Lowering taxes on businesses
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Increasing spending on roads and bridges
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Increasing regulation of small business
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Detailed explanation-1: -The three pillars of supply-side economics are tax policy, regulatory policy, and monetary policy. The core point of supply-side economics is that production (i.e. the “supply” of goods and services) is the most important in determining economic growth.
Detailed explanation-2: -The supply-side theory, or supply-side economics, is a macroeconomic concept that contends that increases in the supply of goods lead to economic growth. Supply-side economists argue that the government should increase production through tax cuts and reduced regulation.
Detailed explanation-3: -Which of the following best describes supply-side economics? Tax rates, particularly marginal tax rates, affect the incentive to work, save, and invest and, therefore, aggregate supply.
Detailed explanation-4: -Monetary Policy: Governments increase the circulation of money by implementing expansionary measures-like reduced borrowing rates. Tax Policy: Governments curtail income tax and marginal taxes to motivate entrepreneurs, producers, investors, suppliers, and workers. More items