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What was the initial result of the reagan tax cuts? 1. the gross national product decreased and allowed americans to afford more, but ultimately resulted in the collapse of many businesses. 2. banks found the reduction of taxes led americans to stop borrowing, which led to the failure of many savings and loan companies. 3. interest rates soared and increased the value of the us dollar, which ultimately led other countries not to buy overpriced american goods. 4. the loss of tax revenue to the federal government promoted deficit spending and a reduction of state funds which also led to a reduction of social programs.
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