When a prospering economy began to show signs of hitting a slump,President Eisenhower,despite diverse suggestions from all sides,held the tax rate stable and,in effect,did nothing.In hindsight,most economists of the 1990s agree that Eisenhower's strategy

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The use of automatic stabilizers, such as stable tax rates, can help to mitigate the negative effects of an economic slump by providing a relatively stable level of government spending and taxation. This approach is generally seen as effective by economists in the 1990s, suggesting that Eisenhower's strategy was the right one in the context of the time. Options A, B, C, and D are not supported by current economic perspectives.

When a Prospering Economy Began to Show Signs of Hitting