The economic theory that posits that reducing the marginal rate of taxation will create a productive economy and that is opposed to keynesian theory is known as

Question

Audrina Walker

Social Studies

Today, 12:34

The economic theory that posits that reducing the marginal rate of taxation will create a productive economy and that is opposed to keynesian theory is known as

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Answers (1)

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Kaylah Nguyen · Answer 1

The answer is "Supply-side economics".

Explanation:

When there is low tax rates, it boosts the growth in economy by giving individuals motivators to work, save, and contribute more, this economic theory is known as supply-side economics. A basic belief of this theory is that giving tax reductions to high-pay individuals produces more noteworthy economic advantages than giving tax breaks to low income people.