The theory that lowering taxes will stimulate the economy because of increased investment and spending among the public is called ________.

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The theory that lowering taxes will stimulate the economy because of increased investment and spending among the public is called supply-side economics. Keynesian economics focuses on government intervention in the economy to manage economic growth and recession. Fiscal federalism refers to the division of financial responsibility and decision-making between national and local governments. Central economic planning is an approach in which the government directly controls and plans the economy.

The Theory That Lowering Taxes Will Stimulate the Economy Because