A Congressional representative who calls for a decrease in tax rates in order to increase saving, work effort, and economic growth would most likely be advocating
A) an easy money policy.
B) a tight money policy.
C) a supply-side ﬁscal policy.
D) a contractionary ﬁscal policy.

Question

Quizplus · Accepted Answer

A decrease in tax rates with the intention of increasing saving, work effort, and economic growth is a characteristic of supply-side fiscal policy. This approach holds that cutting taxes will increase incentives to work and invest, leading to increased economic activity and eventually higher tax revenues.

A Congressional Representative Who Calls for a Decrease in Tax