The Reagan administration's 1981 personal income tax changes were designed to:
a. stimulate aggregate demand and reduce unemployment
b. stimulate aggregate demand and increase economic growth.
c. stimulate aggregate supply and increase economic growth.
d. decrease aggregate demand in order to reduce inflation.
e. increase tax revenues to reduce the federal budget deficit.
c
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When the Federal Reserve buys bonds on the open market, it decreases the money supply
Indicate whether the statement is true or false
If the market value of what it has lent is less than the market value of what it has borrowed, a financial institution's net worth is ________ and it is ________
A) negative; illiquid and insolvent B) positive; illiquid and insolvent C) negative; insolvent but not necessarily illiquid D) positive; insolvent but not necessarily illiquid E) negative; illiquid but not necessarily insolvent