1. What was the central assumption that the Reagan administration's supply-side economic policies depended on?

Question

1. What was the central assumption that the Reagan administration's supply-side economic policies depended on?

a. that increasing spending on social programs would improve the nation's standard of living, ensuring economic stability
b. that imposing strict barriers to trade would promote domestic competition, stimulating economic growth
c. that providing tax relief to the rich would lead to increased spending and investment, stimulating economic growth
d. that regulating business would help to protect valuable natural resources, ensuring economic stability

Answer 1

c. that providing tax relief to the rich would lead to increased spending and investment, stimulating economic growth

Answer 2

The central assumption that the Reagan administration's supply-side economic policies depended on was option c: that providing tax relief to the rich would lead to increased spending and investment, stimulating economic growth.

Answer 3

The central assumption that the Reagan administration's supply-side economic policies depended on was the idea that providing tax relief to the rich would lead to increased spending and investment, thereby stimulating economic growth. This assumption is reflected in option c: "that providing tax relief to the rich would lead to increased spending and investment, stimulating economic growth."