Which of the Following Statements About the Tax Cut Enacted

question 16

Multiple Choice

Which of the following statements about the tax cut enacted in 1981 during the Reagan administration 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 the "supply side" economists in President Reagan's administration.
• E)The tax cut was favored by Congress but opposed by the President and passed over his veto.

---

Definitions:

Decrease Blood pH

A condition often resulting from acidosis where there is an excess of hydrogen ions in the blood, making it more acidic.

Alveolar Walls

The thin barriers separating the air in the alveoli (tiny air sacs) from the blood in the surrounding capillaries within the lungs, facilitating gas exchange during breathing.

Bronchi

The major air passages that branch from the trachea into the lungs, facilitating the transport of air.

Cystic Fibrosis

A genetic disorder that affects the respiratory and digestive systems, leading to clogged ducts and secreted fluids.