Question

Based on the theory of supply-side economics, how does cutting taxes encourage economic growth?

It allows businesses to raise prices on basic goods.
It allows consumers to spend more money on products.
It increases government revenue to fund public projects.
It provides more money for government assistance programs.

Answer 1

It allow consumers to spend more money on products.
Step by step explanation.
I am a professional economic consultant, and this is one of the basic things they teach us in college.

Answer 2

The answer is B. It allows consumers to spend more money on products.

Step-by-step explanation: