Upon which of the following propositions are supply-siders more likely to agree with Keynesians than with modern monetarists?

Question

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Supply-siders are more likely to agree with Keynesians on the idea that cuts in tax rates promote economic growth by the private sector. Both schools of thought believe that reducing tax rates can incentivize individuals and businesses to work harder and invest more, which can lead to increased economic activity and growth. Modern monetarists, on the other hand, may argue that changes in tax rates have little impact on economic growth and that the focus should be on controlling the money supply to combat inflation. Option A is more in line with the views of modern monetarists, who emphasize the importance of controlling the money supply to manage inflation. Option B is also more in line with Keynesian thought, which emphasizes the role of government spending in stimulating demand during a depression. Option C is a classic Keynesian idea that transfer payments can stimulate demand by increasing the purchasing power of those with a higher propensity to consume.

Upon Which of the Following Propositions Are Supply-Siders More Likely