Question

Ic 29. Which of the following happened during Ronald Reagan's term as President (1981 through 1988)? A) B) C) D) The federal deficit was greatly reduced. The Gramm-Leach-Bliley Act was passed, eliminating many restrictions on banking. The national debt increased significantly. A and B. 30. Which of the following happened during Bill Clinton's term as President (1993 through 2000)? A) B) C) D) The federal deficit was greatly reduced. The Gramm-Leach-Bliley Act was passed, eliminating many restrictions on banking. The number of people receiving welfare was greatly reduced. All of the above.

Answer 1

Answer 29. The correct answer is C ie., The national debt increased significantly. Reagan was elected for presidency in the year 1981. He budgeted the fiscal year behining from 1982 to 1989. Dueing his presidency the national debt rose to almost triple the existing level ie., from almost $738 Billion to $2.1 Trillion. He also reduced the tax on capital hains to 20%, which was considered to be the lowest at that time and hence federal dedicit was also increased as government revenues decreased.

Answer 30. The correct answer is D, ie., All of above. During clinton’s presidency rule the tax rate was significantly increased, making the government revenues to increase. Apart from tax increase, there were also some restricyions on the spending level and hence balance was maintained. During his presidency the stock market also begain to rise, thus creating huge capital gains and eventually tax on them. Such rise in capital gains led to rise in the salary levels and he also imposed tax on payrolls for social security, which further increased the revenue. During the clinton period he saved the social security fund and thus helped to reduce the deficit.