Reagan's tax policy ("Reaganomics") argued that
A) the federal government should create jobs to decrease unemployment and increase wages.
B) tax rates for the wealthy should be significantly increased since they had the largest discretionary income.
C) reduced taxes would increase investments and in turn stimulate production, jobs, and prosperity.
D) increased taxes would reduce the federal deficit, lowering interest rates and cutting inflation.

Question

Quizplus · Accepted Answer

Reaganomics advocated for supply-side economics, which posits that lowering taxes, especially on the wealthy and businesses, would stimulate investment and economic growth, leading to more jobs and prosperity. This approach contrasts with demand-side economics, which might advocate for increased government spending to boost demand and create jobs.

Reagan's Tax Policy ("Reaganomics") Argued That