Supply-side economists emphasize the importance of saving to finance investment.
Policies such as lower capital gains taxes allow more savings to flow to investment projects,resulting in a rightward shift of AS.

Question

Quizplus · Accepted Answer

This statement accurately reflects the supply-side economic belief that policies aimed at incentivizing saving, such as lower capital gains taxes, will increase the amount of funds available for investment and therefore shift the aggregate supply curve to the right.

Supply-Side Economists Emphasize the Importance of Saving to Finance Investment