46.9k views
2 votes
According to trickle-down economics, which of the these increases economic growth?

A) a decrease in taxes for investors
B) a decrease in the demand for goods
C) an increase in capital gains taxes
D) an increase in government regulation

1 Answer

1 vote

According to trickle-down economics, a decrease in taxes for investors increases economic growth.

Step-by-step explanation:

  • A decrease in taxes for investors is the reason for the increase in economic growth.
  • Trickle-down economics, also known as trickle-down theory, refers to the economic principle that taxes on corporations and the wealthiest in society should be lowered as a way of encouraging short-term corporate activity and long-term benefits for society at large.
  • Supporters of supply-side economic policies such as "Reaganomics" have used the concept in recent times.
User Sagar Joon
by
7.5k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.