A reduction in the capital gains tax, often advocated by proponents of supply-side economics, is supposed to stimulate increased
A)consumer spending.
B)net exports.
C)investment spending.
D)government spending.

Question

Quizplus · Accepted Answer

A reduction in the capital gains tax is intended to encourage people to invest more of their money in the stock market and other assets, thereby increasing investment spending.

A Reduction in the Capital Gains Tax, Often Advocated by Proponents