Asked by Danielle Maidany on Jul 17, 2024
Verified
Among the distinguishing features of the nation's economic picture in the Reagan years was ________________.
A) a wave of business mergers, often in the form of hostile takeovers
B) fewer insider trading scandals and less corruption in the world of high finance than at any other point in the twentieth century
C) a significant narrowing of the income gap between the richest and poorest Americans
D) the public's increasing preference for savings accounts over stock portfolios
Business Mergers
The combining of two or more companies into a single entity, usually to leverage synergies, expand market reach, or improve competitive advantage.
Hostile Takeovers
The acquisition of a company against the wishes of its management and board of directors, often involving a public offer to shareholders to buy their shares at a premium.
Insider Trading
The illegal practice of trading on the stock exchange to one's own advantage through having access to confidential information.
- Gain insight into the essential economic agendas of President Reagan and how they influenced the American economy.
Verified Answer
CR
Carly RecoonJul 20, 2024
Final Answer :
A
Explanation :
In the Reagan years, there was a wave of business mergers, often in the form of hostile takeovers, which led to consolidation and concentration of corporate power. This was a distinguishing feature of the era's economic picture. Option B is incorrect as insider trading scandals and corruption did occur during the Reagan years, including the infamous insider trading scandal involving Michael Milken of Drexel Burnham Lambert in 1989. Option C is also incorrect as the income gap actually widened during the Reagan years, with the wealthy benefiting more from tax cuts than the poor. Option D is not a significant feature and is not supported by any evidence.
Learning Objectives
- Gain insight into the essential economic agendas of President Reagan and how they influenced the American economy.