Which of These Is a Supply-Side Approach to Increase Growth

question 69

Multiple Choice

Which of these is a supply-side approach to increase growth?

• A)Spending on the construction and repair of state highways
• B)Providing tax benefits to start-up companies
• C)Investing in the production of arms and ammunitions
• D)Replacing old aircrafts with new fighter planes
• E)Increasing transfer payments to retirees

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Definitions:

Foreign Aid

Is financial, technical, or material assistance given by one country to another, usually for developmental purposes or humanitarian aid.

Loan Interest

The additional amount charged by a lender to a borrower for the use of borrowed funds, usually expressed as an annual percentage of the principal.

Dependency Theory

Views economic underdevelopment as the result of exploitative relations between rich and poor countries.

Modernization Theory

Holds that economic underdevelopment results from poor countries lacking Western attributes. These attributes include Western values, business practices, levels of investment capital, and stable governments.