Which of the following is an example of supply-side policy?
A)Selling bonds in the open market.
B)The purchase of military goods by the government.
C)Tax incentives for business investment.
D)Changes in the reserve requirement.

Question

Quizplus · Accepted Answer

Tax incentives for business investment are a supply-side policy aimed at incentivizing businesses to increase their production and investment, ultimately increasing the economy's supply of goods and services. Selling bonds in the open market and changes in the reserve requirement are monetary policy tools, while the purchase of military goods is a government spending policy.

Which of the Following Is an Example of Supply-Side Policy