How did president ronald reagan's supply-side economics work?

The correct answer is C) Taxes are reduced, so people have increased income to spend.

President Ronald Reagan's supply-side economics work in that "Taxes are reduced, so people have increased income to spend."

The famous "Reaganomics," was the economic policy of Republican President Ronald Regan. In simple terms, it consisted of making cuts and reductions in four important areas of the economy of the United States: reduce the growth of government spending; to cut income taxes and capital gain taxes; to cut the expansion of the supply of money and diminish the regulation of business.

The other options of the question were A) taxes are increased and people are more likely to save. B) taxes are increased so the government has more money. D) taxes are reduced and people save more money.

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