During the Early Years of the Reagan Administration, Some of the Presidential

question 184

Multiple Choice

During the early years of the Reagan administration, some of the presidential advisors argued that tax cuts could reduce inflation because they would give people an incentive to produce more. Critics of this argument believed that tax cuts would increase inflation, not reduce it. The critics were arguing that tax cuts move the:

• A)aggregate demand curve to the right with little change in long-run aggregate supply.
• B)aggregate demand curve to the left with little change in long-run aggregate supply.
• C)long-run aggregate supply curve to the right with little change in aggregate demand.
• D)long-run aggregate supply curve to the left with little change in aggregate demand.

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Definitions:

Montgomery Bus Boycott

A civil rights protest in 1955-1956 in Montgomery, Alabama, where African Americans refused to use the city buses to fight against segregated seating.

Rosa Parks

An African American civil rights activist whose refusal to give up her seat on a segregated bus in Montgomery, Alabama, in 1955 led to a citywide boycott and became a symbol of the fight against racial segregation.

Predatory Lending

Unethical practices by lenders who impose unfair and abusive loan terms on borrowers, often through high interest rates or unreasonable fees.

Loans

Money, property, or other material goods given to another party in exchange for future repayment of the loan value amount with interest or other finance charges.