Policy initiatives typically associated with "supply-side economics" would include
A)increased spending for national defense.
B)increases in the minimum wage.
C)investment tax credits.
D)reduced minimum reserve requirements.

Question

Quizplus · Accepted Answer

Supply-side economics is based on the idea that lower taxes and reduced regulation increase the productive capacity of the economy, leading to higher economic growth and job creation. Investment tax credits are a policy tool designed to encourage business investment and innovation, making them consistent with supply-side economics. The other options are not typically associated with supply-side economics. Increased spending for national defense is more closely associated with neoconservative foreign policy, while increases in the minimum wage are generally supported by progressives. Reduced minimum reserve requirements are a tool of monetary policy, not supply-side economics.

Policy Initiatives Typically Associated with "Supply-Side Economics" Would Include