Question

Which of the following statements about "trickle down" theory is TRUE?

This was an economic theory embraced by Ronald Reagan. The theory is based on the idea that large tax cuts on the wealthy would save rich people money, and that they would then use that money to invest in business ventures that would create jobs for lower income peoples.


This was an economic theory embraced by Jimmy Carter. The theory is based on the idea that large tax cuts on the wealthy would save rich people money, and that they would then use that money to invest in business ventures that would create jobs for lower income peoples.


This was a socio-economic theory based on the idea that social change is slow but could be encouraged through affirmative action programs that would eventually lead to the creation of a racially diverse middle class.


This was a social welfare theory based on the idea that social welfare programs were nothing but a "trickle down" of wealth that did little to help the poor.

Answer 1

This was an economic theory embraced by Ronald Reagan. The theory is based on the idea that large tax cuts on the wealthy would save rich people money, and that they would then use that money to invest in business ventures that would create jobs for lower income peoples.

Step-by-step explanation:

The statements about "trickle down" theory that is TRUE is option A.

This is because, trickle-down economics, or “trickle-down theory,” is a theory that says that the benefits of the wealthy would eventually trickle down to the middle-class and poor citizens due to tax breaks.

Therefore, money that is gotten from such tax cuts would be invested in business ventures that would create jobs for the middle-class and poor citizens.