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

question 134

Multiple Choice

During the Reagan administration, the Laffer curve was used to ague 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:

Cognitive Dissonance

The psychological unease felt by someone who concurrently possesses two or more conflicting beliefs, ideas, or values.

Consistent

Showing steady conformity to character, profession, belief, or custom over time.

Values

Fundamental beliefs or standards of an individual or group that guide behavior and decision making.

Mutual Empathy

A shared understanding and reciprocal feeling of empathy among individuals, fostering a sense of connection and support.