The Reagan Revolution Answers

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1
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Overall, the US economy prior to the 1980 presidential election can best be described as

A
improving.
B
static.
C
strong.
D
weak.
2
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Critics called President Reagan’s economic plan “trickle-down economics.” The term described his plan to cut taxes, allowing money to trickle down from

A
consumers to investors.
B
the wealthy to the poor.
C
businesses to consumers.
D
the wealthy to the government.
3

Of the following groups, the one that contributed most to the conservative victory in the 1980 election was

A
Carter Republicans.
B
supporters of Carter’s US economic policies.
C
people opposed to increased military spending.
D
Reagan Democrats.
4

What was Ronald Reagan’s basic belief about economic growth?

A
He thought greater government involvement in business would fix the nation’s economic problems.
B
He felt that more regulations would help to create more jobs.
C
He believed that decreasing government spending would eventually lead to economic growth.
D
He thought that higher taxes would provide incentives for growth.
5

What was the link between the political situations in Iran and Nicaragua during the mid-1980s?

A
US hostages taken by Nicaragua were set free after Iran funded their release.
B
The US government sent money to both countries to support radical regimes.
C
Profits from the arms sold to Iran were used to fund the Contras in Nicaragua.
D
Both countries fought the USSR with weapons supplied by the United States.
6

Primarily as a result of the United States’ support of Israel, attacks on American targets, such as the Marine barracks in Lebanon, increased in the 1980s. Who was responsible for these attacks?

A
Islamic fundamentalists
B
the Soviet Union
C
Nicaragua’s Sandinistas
D
the Contras
7

Which statement best summarizes how Reagan’s economic policies affected the US economy?

A
There was a decline in unemployment, but people made less money and paid higher taxes.
B
There was a significant rise in prosperity triggered by a reduction in federal spending and the national debt.
C
There was an increase in defense spending because of tax increases and the elimination of the national debt.
D
There was overall prosperity, but federal spending and the national debt also increased.
8

Why did the United States sell arms to Iran in the 1980s?

A
to oust Iran’s Communist government from power
B
to prevent the Soviets from winning control of Iran
C
to obtain the release of the hostages
D
to get revenge for the bombing of American marine barracks
9

Reagan’s plans for the Strategic Defense Initiative

A
pressured the Soviets to build similar technologies.
B
involved decreasing stocks of US nuclear weapons.
C
resulted in a decisive end to the Cold War.
D
provided opportunity for peace talks to begin.
10

The economic situation at the beginning of Ronald Reagan’s first term in which unemployment and inflation were both high was referred to as

A
Reaganomics.
B
trickle-down economics.
C
the Strategic Initiative.
D
stagflation.

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