The Reagan administration's experiment with supply-side economics produced a historic period of economic expansion that was accompanied by
A) falling real interest rates.
B) high unemployment rates.
C) a dramatic increase in the federal government's budget deficit.
D) a reduction in the U.S. trade deficit.
E) All of the above.

Question

Quizplus · Accepted Answer

The Reagan administration's experiment with supply-side economics, while leading to economic expansion, also resulted in a dramatic increase in the federal government's budget deficit due to significant tax cuts and increased military spending.

The Reagan Administration's Experiment with Supply-Side Economics Produced a Historic