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Encouraging investment in research and development through tax cuts involves which type of economic policy?

Encouraging investment in research and development through tax cuts involves supply-side economic policy. The idea of supply-side economics was developed in the 1970s.


What aspect of a government's economic policy deals with the money supply?

monetary policy


Decreasing the money supply involves which type of economic policy?

Decreasing the money supply does not involve any type of economic policy. It is what happens afterward that affects the economy. Decreasing the money supply will lead to higher interest rates.


How do fiscal and monetary policy affect the nations economy?

Fiscal policy, which involves government spending and taxation decisions, directly influences economic activity by affecting aggregate demand. When the government increases spending or cuts taxes, it can stimulate growth and reduce unemployment. On the other hand, monetary policy, controlled by a nation's central bank, involves managing interest rates and money supply to ensure price stability and encourage investment. Together, these policies help regulate inflation, stabilize the economy, and promote sustainable growth.


Increasing the money supply involves which type of economic policy?

An economic policy of enhancing growth, especially in exports will increase the money supply. This can be measured from recent economic history. The last thing, or shall I say an increase in taxes will de-stimulate the growth of the money supply. Another negative would be to increase the money supply by fiat, or in other words "printing it"

Related Questions

Increasing taxes involves which type of economic policy?

Supply-side Economics


Encouraging investment in research and development through tax cuts involves which type of economic policy?

Encouraging investment in research and development through tax cuts involves supply-side economic policy. The idea of supply-side economics was developed in the 1970s.


Why is supply and demand important to environmental science?

Because environmental science involves costs and benefits which, as economic variables, are governed by supply and demand.


Decreasing the money supply involves which type of economic policy?

Decreasing the money supply does not involve any type of economic policy. It is what happens afterward that affects the economy. Decreasing the money supply will lead to higher interest rates.


What government policies pursue the economic goal of growth?

Increasing the money supplyapex ;PAngelIncreasing the money supply


What aspect of a government's economic policy deals with the money supply?

monetary policy


Increasing the money supply involves which type of economic policy?

An economic policy of enhancing growth, especially in exports will increase the money supply. This can be measured from recent economic history. The last thing, or shall I say an increase in taxes will de-stimulate the growth of the money supply. Another negative would be to increase the money supply by fiat, or in other words "printing it"


What is the name of the economic system where the government or another central administration regulates supply and prices?

command economy


What is the difference between free markets and government planning?

Free markets operate on the principles of voluntary exchange and competition, where prices are determined by supply and demand without significant government intervention. In contrast, government planning involves centralized decision-making by authorities to allocate resources, set prices, and regulate production, often aiming to achieve specific social or economic goals. While free markets prioritize efficiency and innovation, government planning can address inequalities and provide public goods, but may also lead to inefficiencies and lack of responsiveness to consumer needs. The balance between the two approaches can significantly influence economic outcomes and societal welfare.


What has the author Carl J Bauer written?

Carl J. Bauer has written: 'Against the current' -- subject(s): Economic aspects, Economic aspects of Water-supply, Government policy, Privatization, Water rights, Water-supply


What was the economic theory of Reaganomics that emphasized cutting taxes and government spending in order to stimulate investment productivity and economic growth by private enterprise?

Supply side economics


What has the government done to regulate the drug industry?

The federal government attempted to increase industry competition and help supply cheaper drugs for the public by aiding the generally smaller and independent generics manufacturers.