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:

Maximal

Pertaining to the highest or greatest possible amount or degree.

Root

The basic cause, source, or origin of something or the fundamental part of a word to which affixes can be added.

Maxim

A concise statement expressing a general truth or rule of conduct.

Eti/o

A prefix in medical terminology referring to causes or origins of diseases.