Question

Q.6) what are the components of reaganomics? a) (the concept of) sound money, deregulation, modest tax rates, and limited government spending. b) government interference, social security benefits, high government spending, and high tax rates. c) minimal government, tax cuts, moderate government spending, regulation. d) central planning, highest tax rates, regulation, no private property. e) none of the above.

Answer 1

The components of Reaganomics included sound money, deregulation, modest tax rates, and limited government spending, aimed to boost the economy by reducing taxes for the wealthy and limiting federal intervention.

Step-by-step explanation:

The components of Reaganomics are best described by the economic policies implemented by President Ronald Reagan, which were centered around supply-side economics. This approach included a) the concept of sound money, deregulation, modest tax rates, and limited government spending. Key elements of Reaganomics involved significant tax cuts, particularly for those at the top of the economic ladder, in the hope of stimulating investment and economic growth. Contrary to high-tax and high-spend government policies, Reaganomics aimed to stimulate the private sector by reducing federal revenue and government intervention, although it resulted in a considerable increase in the federal deficit due to the optimistic belief that the economy would boom and tax revenues would ultimately increase even with lower rates.