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Businesses spend more and increase employment.

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Q: How can lowering taxes stimulate the economy?
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The new deal involved attempts to stimulate the American economy by what?

Lowering taxes.


How would a government most likely respond to a slowdown in the economy?

Lowering taxes in order to stimulate spending


How would the government Respond to a slowdown in economy?

Stop printing money.


Why were taxes cut in 1964?

to stimulate the economy


Why were income taxes cut in 1964?

to stimulate the economy


What did Ronald Reagan do as chief legislator?

Ronald Reagan helped stimulate a 17 year period of growth in the US economy by sharply lowering taxes.


Did JFK lower taxes?

He proposed lower taxes as a way to stimulate the economy


Why did George W. Bush cut taxes in his first term?

stimulate the economy


Why did president George W. Bush cut taxes in his first term?

stimulate the economy


How did Carter try to stimulate the economy?

Carter, the man who had promised to cut taxes while campaigning in 1976, was saying new taxes were necessary.


When would the government step in and spend more Revenue and or lower taxes to stimulate demand?

They would do this when the economy is weak.


When would the government step in and spend more revenue and lower taxes to stimulate demand?

They would do this when the economy is weak.