In 1981, the Reagan administration employed a policy that included tax ____ while at the same time the Federal Reserve's strategy was to combat ____.
A)cuts; unemployment
B)cuts; inflation
C)hikes; unemployment
D)hikes; inflation

Question

Quizplus · Accepted Answer

The policy of tax cuts was employed to stimulate economic growth and increase investment, while the Federal Reserve's strategy was to combat inflation by using tight monetary policy, which involved raising interest rates to reduce spending and inflation.

In 1981, the Reagan Administration Employed a Policy That Included