President Reagan often stated he preferred supply side policies.Which of the following federal government policies would be considered supply side?
I.decrease the quantity of money
Ii.lower taxes
Iii.lower the interest rate

Question

Quizplus · Accepted Answer

Lowering taxes is considered a supply side policy as it aims to increase the supply of goods and services by encouraging businesses to invest and expand their operations. Decreasing the quantity of money and lowering interest rates are considered demand side policies as they aim to stimulate demand for goods and services by increasing the amount of money available for spending and making it cheaper to borrow money.

President Reagan Often Stated He Preferred Supply Side Policies