Supply-Side Economics Is the Idea That

question 55

Multiple Choice

Supply-side economics is the idea that

• A)the best method of producing high levels of economic growth is to engage in high levels of government spending.
• B)the government should impose heavy tariffs on imported goods in order to protect domestic suppliers.
• C)the government's role in the economy should be strictly limited to regulating the supply of money.
• D)reducing the marginal rate of taxation will create a productive economy by promoting levels of work and investment that would otherwise be discouraged by higher taxes.

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Definitions:

Interest Payment

The amount paid by a borrower to a lender as compensation for the use of borrowed money, typically expressed as a percentage of the principal.

Premium

The amount paid for an insurance policy or the amount by which a bond sells above its face value.

Discount on Bonds Payable

The discrepancy between a bond's face value and its sale price when it is sold below its face value.

Carrying Value

The book value of an asset or liability on a company's balance sheet, representing its original cost adjusted for any depreciation, amortization, or impairment.