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

Question

Quizplus · Accepted Answer

Tax incentives for business investment are an example of a supply-side policy, as they aim to increase the amount of goods and services supplied by businesses. Selling bonds in the open market, the purchase of military goods by the government, and changes in the reserve requirement are all examples of demand-side policies as they aim to stimulate demand in the economy through monetary and fiscal policy.

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