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.