Which of the Following Statements About the Tax Cut Enacted

question 51

Multiple Choice

Which of the following statements about the tax cut enacted in 1981 is correct?

• A)The tax cut caused the recession of 1982.
• B)The tax cut and the recession of 1982 combined to produce one of the largest peace-time deficits ever experienced up to that time.
• C)The tax cut stimulated a large increase in economic activity and led directly to the balanced budget of 1982.
• D)The tax cut was opposed by supply-side economists.
• E)The tax cut was favored by Congress but opposed by the President and passed over his veto.

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