Which of the following is a tenet of supply-side economics?
A) High marginal tax rates severely discourage work,saving,and investment.
B) Increases in social security taxes and other business taxes shift the aggregate supply curve to the right.
C) The Federal Reserve should adhere to a monetary rule that limits increases in the money supply to a 5 percent annual rate.
D) Transfer payments increase incentives to work.

Question

Quizplus · Accepted Answer

Supply-side economics emphasizes the importance of providing incentives for individuals and businesses to work, save, and invest. High marginal tax rates are seen as a disincentive to these activities, and reducing them is a key component of supply-side policies.

Which of the Following Is a Tenet of Supply-Side Economics