Question

How did “trickle-down economics” differ from the economic models followed by previous presidents?(1 point)ResponsesTax breaks for lower- and middle-income families were meant to stimulate the economy as they would spend more.Tax breaks for lower- and middle-income families were meant to stimulate the economy as they would spend more.Increased taxes for lower- and middle-income families were meant to provide a shot in the arm to the sagging economy.Increased taxes for lower- and middle-income families were meant to provide a shot in the arm to the sagging economy.Tax cuts for those at the top of the economic ladder were meant spur investment to stimulate economic growth.Tax cuts for those at the top of the economic ladder were meant spur investment to stimulate economic growth.Reagan believed large federal government-run social programs were beneficial for the economy, “trickling down” to the people.

Answer 1

The correct response that captures the essence of "trickle-down economics" compared to previous economic models is:

Tax cuts for those at the top of the economic ladder were meant to spur investment to stimulate economic growth.

Trickle-down economics, often associated with the Reagan administration, focused on providing tax cuts to wealthy individuals and corporations with the belief that this would lead to increased investments and eventually benefit all levels of the economy. In contrast, many previous economic models emphasized direct support for lower- and middle-income families to stimulate spending and economic activity.