What was Ronald Reagan's economic plan in the 1980s with regards to taxes and military spending?

A) Ronald Reagan's policy favored cutting military spending to provide tax breaks to the middle class.

B) Ronald Reagan focused on increasing taxes in order to increase military spending during the Cold War.

C) Ronald Reagan implemented supply side economics to decrease taxes while increasing military spending.

D) Ronald Reagan devoted his economic plan to balancing the budget by decreasing taxes and military spending.

Question

Olive Gonzales

History

1 June, 12:24

What was Ronald Reagan's economic plan in the 1980s with regards to taxes and military spending?

A) Ronald Reagan's policy favored cutting military spending to provide tax breaks to the middle class.

B) Ronald Reagan focused on increasing taxes in order to increase military spending during the Cold War.

C) Ronald Reagan implemented supply side economics to decrease taxes while increasing military spending.

D) Ronald Reagan devoted his economic plan to balancing the budget by decreasing taxes and military spending.

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Answers (1)

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Sweetie · Answer 1

Ronald Reagan's economic plan in the 1980s with regards to taxes and military spending was Ronald Reagan implemented supply side economics to decrease taxes while increasing military spending.

Option C

Explanation:

Ronald Regan's economic policies are popularly known as regaonomics. These policies were introduced due to high rates of stagflation that was paralysing the economy during the period of 1980's. The regaonomic policies were based on three fold objective - decrease in various forms of taxes such capital gains tax and federal tax, increase in the levels of military spending, while adopting the free market policies or in other words deregulation of government authority over the markets.