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Analyze Causes and Effects
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AP U.S. History
APUSH.026 Analyze Causes and Effects
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Supporters of Reagan-era economic policy argued that high taxes and regulation discouraged investment. Which option best explains the cause-and-effect reasoning behind those policies?
A
Reaganomics was caused by the Panic of 1819 and had limited connection to twentieth-century conservatism.
B
Tax cuts automatically eliminated deficits because lower revenue usually increases government income quickly.
C
Deregulation caused the New Deal to be created because Reagan preceded Franklin Roosevelt.
D
Stagflation and conservative critiques of government helped justify tax cuts and deregulation, with contested effects on deficits and inequality.
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