Based on his economic policy, President Reagan believed that most Americans would experience which of the following outcomes?

• A. Significant increases in federal taxes for most households
• B. Higher unemployment and reduced consumer spending
• C. Increased economic growth and higher personal incomes
• D. Greater government intervention in the economy

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the context of President Reagan's economic policy, commonly known as 'Reaganomics,' which emphasized supply-side economics, tax cuts, deregulation, and reduced government spending on social programs.
2. Step 2: Identify the expected outcomes of these policies, which aimed to stimulate economic growth by increasing incentives for investment and work, rather than increasing taxes or government intervention.
3. Step 3: Recognize that Reagan's policies were designed to reduce federal taxes, especially for individuals and businesses, to encourage higher production and economic activity.
4. Step 4: Note that the intended macroeconomic effects included increased economic growth, higher employment, and rising personal incomes, as opposed to higher unemployment or reduced consumer spending.
5. Step 5: Conclude that based on Reagan's economic policy, most Americans were expected to experience increased economic growth and higher personal incomes, rather than significant tax increases or greater government intervention.