The Reagan Tax Cut of 1981 Was an Attempt To

question 117

Multiple Choice

The Reagan tax cut of 1981 was an attempt to:

• A)stimulate aggregate supply.
• B)stimulate aggregate demand.
• C)stabilize the value of the U.S.dollar.
• D)increase demand for U.S.exports.
• E)reduce the federal budget deficit.

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Definitions:

Belief Preservation

The tendency for people to hold onto their beliefs even when faced with contrary evidence, also known as belief perseverance.

Fundamental Attribution Error

The tendency to underestimate the importance of situational influences and to overestimate personal, dispositional factors as causes of behavior.

Motivational Bias

A cognitive bias that affects the direction of people's behavior by their underlying motives, desires, or needs.

Focus-of-Attention Bias

The tendency to prioritize and remember information that is the focus of one's attention, often at the expense of other information.