The Reagan Revolution Answers

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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.
2
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Why did President Reagan order the CIA to recruit the Contras?

A
He wanted to use the Contras to help free US hostages being held by terrorists.
B
He thought they could help the United States sell arms to countries fighting Communism.
C
He thought they were necessary to oust a Communist-leaning government in Nicaragua.
D
He felt that it would prompt Congress to change its stand on US involvement in Latin America.
3

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
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

According to Reagan’s model for supply-side economics, how would average Americans be affected?

A
Tax increases for business owners would reduce the income of the wealthy, so the average person would have more.
B
Tax cuts would mean that businesses would become more efficient and workers would lose their jobs.
C
Tax increases would mean that businesses would have less wealth and would produce less for consumers.
D
Tax cuts would stimulate business growth, which would grow the economy and benefit everyone.
6

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.
7

At the time of his election, Ronald Reagan felt that the problems the United States was experiencing

A
could be virtually eliminated by raising taxes.
B
were the result of excessive government spending.
C
had been caused by too little government intervention.
D
had developed because there were too few social services.
8

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.
9

What did President Reagan’s new approach to the Cold War reveal about his foreign-policy strategy?

A
He thought that aggressive military action would lead to peace.
B
He favored peace talks, trade agreements, and negotiation.
C
He wanted to work for peace from a position of military strength.
D
He believed that cutting defense spending would improve US foreign relations.
10

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

A
improving.
B
static.
C
strong.
D
weak.

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