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.