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10 January, 10:04

Based on the theory of supply side economics how does cutting taxes encourage Economic growth? A it allows businesses to raise prices on basic goods. B It allows consumers to spend more money on products it allows consumers to spend more money on products C It increases government increases government revenue to fund public projects. D It provides more money for government assistance programs

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  1. 10 January, 13:47
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    B It allows consumers to spend more money on products

    Explanation:

    Supply-side economics is a theory that is of the opinion that reducing tax rates and decreasing regulation would boost economic growth.

    According to this theory, consumers will benefit from this as they would buy goods at a cheaper rate, employment would increase and there will be increased supply.

    This increased supply of goods at a cheaper rate would allow consumers have more money to purchase more goods and services.
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