What was the central assumption that the Reagan administration's supply-side economic policies depended on?

A.
that regulating business would help to protect valuable natural resources, ensuring economic stability

B.
that imposing strict barriers to trade would promote domestic competition, stimulating economic growth

C.
that providing tax relief to the rich would lead to increased spending and investment, stimulating economic growth

D.
that increasing spending on social programs would improve the nation's standard of living, ensuring economic stability

1 answer

The central assumption that the Reagan administration's supply-side economic policies depended on was:

C. that providing tax relief to the rich would lead to increased spending and investment, stimulating economic growth.

Supply-side economics posits that lower taxes on individuals and businesses can lead to more investment, job creation, and overall economic growth by encouraging individuals to work, save, and invest.