Asked by Mirtha Sanchez on Apr 24, 2024

How did trickle-down economics claim to increase government tax revenues?

A) by increasing the amount of aid distributed among the poor
B) by lowering inflation
C) by the creation of a powerful welfare state
D) by lowering interest rates
E) by curbing inflation and lowering tax rates

Trickle-Down Economics

An economic theory suggesting that benefits given to the wealthy or businesses will eventually trickle down to everyone in the form of investments and jobs.

Tax Revenues

The income that is gained by governments through taxation, which is used to fund public expenditures.

  • Describe the foundational economic concepts of policies like Reaganomics and their implications.