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Reaganomics / Supply-side economics rests on the theory that if taxes are reduced, (1 point) *
people will hoard their money, slowing down the economy.
the jobs and size of the federal government will expand.
people will have more incentive to work, and more money to spend
the federal government will collect less money in taxes.

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Answer:

Reagan made supply-side economics a household phrase and promised an across-the-board reduction in income tax rates and an even larger reduction in capital gains tax rates. Critics of Reaganomics claim it failed to produce much of the exaggerated gains some supply-siders had promised.

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