According to supplyside economic theory,
A) the national debt should be continued indefinitely.
B) reduction of taxes will encourage business expansion, which will ultimately stimulate the whole economic system.
C) conservation of natural resources is the key to long-term economic health.
D) the nation's most important resource is its people.

Question

Quizplus · Accepted Answer

Supply-side economic theory posits that reducing tax rates boosts economic growth by encouraging businesses to invest and expand, which in turn stimulates the overall economy. This approach focuses on increasing the supply of goods and services through tax cuts and deregulation.

According to Supplyside Economic Theory