According to the theories of "Reaganomics,"
A) by increasing revenue from taxes, the country could spend more for defense programs.
B) by cutting taxes, the country's economy would expand and produce more revenue for the federal government.
C) by reducing defense programs, the country could spend more money on domestic programs.
D) by eliminating the income tax and adopted a national sales tax, the country could afford to spend more money on both domestic and defense programs.
E) by raising the income tax and increased corporate taxes, the country could expand its domestic and defense programs.

Question

Quizplus · Accepted Answer

Reaganomics advocated for supply-side economics, which included tax cuts as a means to stimulate economic growth. The theory posited that reducing taxes would give people more spending power, leading to increased demand for goods and services, which in turn would expand the economy and ultimately increase federal revenue.

According to the Theories of "Reaganomics