In 1981,policy Makers in the Reagan Administration Predicted a Balanced

question 138

Multiple Choice

In 1981,policy makers in the Reagan administration predicted a balanced budget for the 1980s because

• A)the budget included a decrease in defense expenditures
• B)the budget included an increase in the tax rate
• C)the budget included an increase in unspecified government spending
• D)growth in GDP was expected to be large enough to lead to an increase in tax revenues despite the tax cut
• E)growth in GDP was expected to be small enough to require less government spending