Fiscal Policy Under the Reagan Administration Was Intended To

question 81

Multiple Choice

Fiscal policy under the Reagan administration was intended to:

• A)stimulate the economy by decreasing taxes in order to increase consumption.
• B)increase tax revenues by increasing the tax rate.
• C)balance the budget by increasing defense spending and increasing taxes.
• D)stimulate the economy by decreasing taxes in order to increase aggregate supply.
• E)stimulate the economy by increasing government spending in order to increase aggregate supply.

---

Definitions:

Governmental Regulation

The laws, rules, and regulations established by government bodies to control activities within various sectors and protect public interests.

Capital Contributions

The money, property, or other assets that an owner or shareholder provides to a business either initially or to support ongoing operations.

Total Share

Refers to the total number of shares of stock that are owned by shareholders, including both public investors and private insiders or executives.

Net Income

The net income of a business following the subtraction of all costs and taxes from its gross earnings.