THE 1970S 1969 1979
FOREIGN POLICIES OF PRESIDENT NIXON
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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cutting taxes and cutting spending
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cutting taxes and increasing spending
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raising taxes and cutting spending
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raising taxes and increasing spending
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Detailed explanation-1: -Economic Policy Reagan embraced the theory of “supply side economics, ” feeling that tax cuts encouraged economic expansion which would result in increases in federal government revenue at a lower tax rate. Higher revenues would then be used to increase defense spending and balance the federal budget.
Detailed explanation-2: -The pillars of Reagan’s economic policy included increasing defense spending, balancing the federal budget and slowing the growth of government spending, reducing the federal income tax and capital gains tax, reducing government regulation, and tightening the money supply in order to reduce inflation.
Detailed explanation-3: -In 1980 Ronald Reagan was elected and promised to cut the top marginal tax rate. This he did, and the top marginal tax rate was lowered over his 8 years in office from 73% to 28% on incomes over just $29, 750-the lowest this rate had been since 1925.