Question

Which of the following ideas is a major element of trickle down economics?

A. Economic aid works better than military action to combat communism.
B. Corporations have an obligation to pay for social welfare programs.
C. Increasing government spending is the best way to fight inflation.
D. Cutting taxes on wealthy Americans will help businesses grow.

Answer 1

D. Cutting taxes on wealthy Americans will help businesses grow.

Answer 2

I believe the answer is letter D - Cutting taxes on wealthy Americans will help businesses grow. Trickle-down economics or trickle-down theory is a term applied in politics to match economic policies observed to benefit the wealthy and later "trickle-down" to the average and lower classes. Other set of choices has these as their answer - Reducing taxes on wealthy Americans will also benefit the poor. Cutting taxes on businesses will encourage them to hire more workers.