Question

question 9 of 10

what was president richard nixons most successful effort to address the weak economy during his first term?

a. freezing wages and prices to address inflation
b. repealing import taxes to boost international trade
c. providing families with a guaranteed annual income
d. allowing uninsured people to buy federal insurance

Explanation:

Identify the economic challenges of Nixon's first term

During his first term (1969–1973), President Richard Nixon faced a combination of rising inflation and sluggish economic growth, a phenomenon later termed "stagflation."

Evaluate Nixon's domestic economic interventions

Using the Nixon Domestic Policy knowledge point:
In August 1971, Nixon implemented his "New Economic Policy" (often called the "Nixon Shock") to combat inflation directly. A central and highly visible component of this plan was a 90-day freeze on wages and prices, which was the first time the US government enacted such controls during peacetime.

Analyze the multiple-choice options

• Option A: Freezing wages and prices to address inflation. This directly matches the 1971 wage and price controls, which initially proved highly popular and successful in temporarily lowering inflation before his 1972 reelection.
• Option B: Repealing import taxes is incorrect; Nixon actually imposed a temporary 10% import surcharge to protect US industries.
• Option C: Providing families with a guaranteed annual income refers to the Family Assistance Plan (FAP), which was proposed but failed to pass Congress.
• Option D: Allowing uninsured people to buy federal insurance is incorrect as it was not a major economic policy enacted during his first term.

Answer:

• (A) Freezing wages and prices to address inflation (Correct answer)
• (B) Repealing import taxes to boost international trade
• (C) Providing families with a guaranteed annual income
• (D) Allowing uninsured people to buy federal insurance