The emphasis on the greater incentives to produce, created by lower taxes, has come to be known as:
A) the trickle-down economics.
B) the supply-side economics.
C) the paradox of thrift.
D) the permanent income hypothesis.
E) monetarism.

Question

Quizplus · Accepted Answer

The emphasis on the greater incentives to produce, created by lower taxes, is a key tenet of supply-side economics. Trickle-down economics is often used interchangeably with supply-side economics, but it typically refers to the belief that helping the wealthy through tax cuts will result in benefits that trickle down to the rest of society. The paradox of thrift, permanent income hypothesis, and monetarism are unrelated concepts.

The Emphasis on the Greater Incentives to Produce, Created by Lower