Reagan's Domestic Policy

What was one of the key traits that Reagan projected, which Americans welcomed?

• Confidence and optimism

• Fear and uncertainty

• Indifference and apathy

• Anger and resentment

What trend did Reagan reverse that began in the Progressive Era?

• Decreased military spending

• Increased federal control

• Expansion of public education

• Growth of environmental regulations

What economic problem was prevalent when Reagan took office?

• Inflation

• Stagflation

• Recession

• Deflation

What economic approach did Reagan use to address the main problem?

• Demand-side economics

• Keynesian economics

• Supply-side economics

• Monetarism

What is another name for "supply-side economics" as mentioned in the text?

• Demand-pull economics

• Trickle-down economics

• Keynesian economics

• Fiscal policy

What factors encouraged business activity as mentioned in the text?

• Increased tariffs and trade barriers

• Tax cuts, deregulation, and military spending

• Higher interest rates

• Reduction in oil production

What was the purpose of the tax cuts proposed by Reagan?

• To increase government revenue

• To reduce inflation

• To raise productivity and increase employment

• To decrease foreign investment

How did Reagan plan to finance the tax cuts?

• By increasing tariffs

• By reducing spending on federal welfare programs

• By borrowing from international banks

• By increasing taxes on imports

What does relaxed enforcement of anti-trust laws allow?

• Fewer business mergers.

• More business mergers.

• Increased government control.

• Decreased competition.

What was one effect of increased military spending on the economy?

• It decreased demand for goods and services

• It led to a recession

• It stimulated the entire economy

• It caused inflation to rise