During the Reagan Administration, the Laffer Curve Was Used to Argue

question 90

Multiple Choice

During the Reagan administration, the Laffer curve was used to argue that:

• A) the supply-side effects of tax cuts are relatively small.
• B) discretionary tax cuts are unwise because they create stagflation.
• C) lower income tax rates could increase tax revenues.
• D) a "flat tax" would simplify the tax code and stimulate economic growth.

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Definitions:

Emotional Reactions

Responses that involve feelings, such as happiness, anger, or sadness, triggered by external events or internal thoughts.

Expectations

Beliefs or anticipations about the way events, actions, or behaviors should unfold in the future.

Reappraisal

A cognitive process that involves changing one's interpretation of a situation in order to alter its emotional impact.

Temper

A person's state of mind seen in terms of their being angry or calm.