Multiple Choice Questions on Trickle down theory ignores the impact of economic growth on ndash ........ for UPSC EPFO Exam Preparation

Growth and development

Indian Economy

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Indian Economy - Understanding the basics of Indian economic system

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    Trickle down theory ignores the impact of economic growth on –

    Investment

    Incorrect Answer

    Savings

    Incorrect Answer

    Income distribution

    Correct Answer

    Consumption

    Incorrect Answer
    Explanation:

    Trickle-down economics, or “trickle-down theory,” states that tax breaks and benefits for corporations and the wealthy will trickle down to everyone else. It argues for income and capital gains tax breaks or other financial benefits to large businesses, investors and entrepreneurs to stimulate economic growth. It ignores the impact of economic growth on income distribution.


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