In 1981,policy makers in the Reagan administration predicted a balanced budget for the 1980s because
A)the budget included a decrease in defense expenditures
B)the budget included an increase in the tax rate
C)the budget included an increase in unspecified government spending
D)growth in GDP was expected to be large enough to lead to an increase in tax revenues despite the tax cut
E)growth in GDP was expected to be small enough to require less government spending

Question

Quizplus · Accepted Answer

The Reagan administration expected growth in GDP to be large enough to lead to an increase in tax revenues, despite the tax cut, thus resulting in a balanced budget for the 1980s.

In 1981,policy Makers in the Reagan Administration Predicted a Balanced