The tax cuts in 1981 and 1982 did not lead to growth in GDP as did the tax cuts in 1964.One reason for this difference was that

Question

Quizplus · Accepted Answer

Expansionary monetary policy, which was implemented and maintained during the years following the tax cuts in 1964, helped to stimulate economic growth. In contrast, restrictive monetary policy was implemented during the years following the tax cuts in 1981-82, which limited the potential for economic growth. Therefore, choice C is the best answer. Choices A, B, and D are not accurate explanations of the difference in the effects of the tax cuts.

The Tax Cuts in 1981 and 1982 Did Not Lead