Question

Which of these statements BEST describes the U.S. economy during the 1980s and early 1990s?

A) Dependence on foreign oil led to record high gas prices.
B) American businesses exported far more than they imported.
C) There was a widening income gap between the rich and poor.
D) High military spending resulted in shortages for consumers.

Answer 1

C) There was a widening income gap between the rich and poor.

Step-by-step explanation:

I just took the test

Answer 2

There was a widening income gap between the rich and poor.

Answer: Option C

Step-by-step explanation:

Ronald Reagan was the president of US during 1980s. He tirelessly worked to improve the US economy in his period. His economic policies were known as ''Reaganomics'' which mostly promoted free-market economics.

Reaganomics was made of 4 pillars and on of them is reduction of income tax. The rate of marginal tax was reduced from 70% to 28%. This in turn wielded a big income gap between the standard people and working class.

This tax reduction encouraged the people to work hard and for long time. That in turn tend to more savings and investments, more production and the economy's supply side were also stimulated.