How did Ronald Reagan hope to help the economy with his Reaganomics plans?
A. by increasing loans to existing businesses to allow them to decrease prices
B. by cutting funding to federal programs and requiring Americans to contribute more to maintain the programs
C. by increasing taxes so that people would save more
D. by cutting taxes so that people would use the extra money to buy more and save more
https://www.investopedia.com/terms/r/reaganomics.asp
The correct answer is D. Ronald Reagan hoped to help the economy with his Reaganomics plans by cutting taxes so that people would have more money to spend and save.
To determine this answer, you can analyze the principles of Reaganomics, which were rooted in supply-side economic theory. Reagan believed that by reducing taxes, especially for businesses and high-income individuals, it would stimulate economic growth. The idea was that if people had more money in their pockets, they would spend it on goods and services, leading to increased demand, production, and job creation.
To find this information, you can study the primary sources and documents related to Reagan's economic policies, such as speeches, policy papers, and official documents. Additionally, you can refer to scholarly articles and books that analyze Reaganomics and its impact on the economy.