What did Reagan do to encourage economic growth? A. He implemented tax cuts. B. He supported deregulation of industries. C. He decreased defense spending. D. He balanced the budget.
History · High School · Tue Nov 03 2020
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Ronald Reagan pursued several economic policies to encourage growth during his presidency and among the options provided:
A. He implemented tax cuts.
One of the central components of Reagan's economic policy was implementing significant tax cuts. The Economic Recovery Tax Act of 1981 and the Tax Reform Act of 1986 aimed to reduce income tax rates for individuals and corporations, believing that lower taxes would incentivize investment stimulate economic growth and create jobs. These tax cuts were a fundamental part of Reagan's supply-side economics, often referred to as "Reaganomics," which emphasized the idea that reducing taxes and regulations would spur economic expansion.