Question
Which economic factors increased as a result of Reagan’s economic policy? Select three options.
employment
personal debt
income taxes
interest rates
federal spending
employment
personal debt
income taxes
interest rates
federal spending
Answers
GPT-4o mini
Three economic factors that increased as a result of Reagan’s economic policy are:
1. **Personal debt** - Reagan's policies, including tax cuts and deregulation, led to an increase in consumer spending, often financed by increased borrowing.
2. **Interest rates** - During the early years of Reagan's presidency, interest rates rose significantly as the Federal Reserve aimed to combat inflation, which was a major issue before and during the early 1980s.
3. **Federal spending** - Although Reagan advocated for limited government, federal spending actually increased during his presidency, particularly in areas such as defense.
Income taxes decreased due to his tax cuts, and employment had a complex trajectory, with significant job growth occurring after initial recessionary challenges.
1. **Personal debt** - Reagan's policies, including tax cuts and deregulation, led to an increase in consumer spending, often financed by increased borrowing.
2. **Interest rates** - During the early years of Reagan's presidency, interest rates rose significantly as the Federal Reserve aimed to combat inflation, which was a major issue before and during the early 1980s.
3. **Federal spending** - Although Reagan advocated for limited government, federal spending actually increased during his presidency, particularly in areas such as defense.
Income taxes decreased due to his tax cuts, and employment had a complex trajectory, with significant job growth occurring after initial recessionary challenges.