The Reagan Tax Cut of 1981 Was an Attempt To

question 117

Multiple Choice

The Reagan tax cut of 1981 was an attempt to:

• A)stimulate aggregate supply.
• B)stimulate aggregate demand.
• C)stabilize the value of the U.S.dollar.
• D)increase demand for U.S.exports.
• E)reduce the federal budget deficit.

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Definitions:

Market Capitalization Rate

A rate that represents the return expected by investors on a security or a portfolio, typically reflective of the risk and growth prospects.

Earnings Retention Ratio

The earnings retention ratio, also known as the plowback ratio, measures the percentage of net earnings a company retains to reinvest in the business, as opposed to distributing to shareholders as dividends.

Plowback Ratio

A metric indicating the proportion of earnings retained by a company for reinvestment in its operations, rather than distributed to shareholders as dividends.

Dividend Growth Rate

The annualized percentage rate of growth of a company's dividend payments, indicating how quickly the dividend payments have grown over a specific period.