Question

Question

How did "trickle-down economics" differ from the economic models followed by previous presidents?(1 point)
Responses

Tax 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 to spur investment to stimulate economic growth.
Tax cuts for those at the top of the economic ladder were meant to 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 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 Ronald Reagan's presidency, focused on providing tax cuts and incentives to businesses and wealthier individuals, with the belief that the benefits would eventually "trickle down" to the rest of the economy, as investments would lead to job creation and economic growth. This was a departure from earlier models that emphasized direct support and tax relief for lower- and middle-income families to stimulate consumer spending.