Federal deficits amounted to 3.5 percent of the U.S. GDP by 2003 because of:
a. the global financial crisis of 2002 that increased the rate of unemployment
b. an increase in the cost of fighting the war against terrorism.
c. an improving stock market that decreased interest payment burdens for the government.
d. a decrease in military and defense spending due to the end of the war in Iraq.
e. an increase in welfare spending and Medicare expenses.
b
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The quantity of goods exchanged in a market will be below the equilibrium quantity
A. when the price is either held above or below the equilibrium price. B. only when the price is held above the equilibrium price. C. only when the price is held below the equilibrium price. D. only when the price is rising.
Suppose a good has an external benefit and no external cost. When a competitive, unregulated market is at its equilibrium, then the
A) marginal private benefit is less than the marginal social benefit. B) marginal private benefit is greater than the marginal social benefit. C) marginal private cost is less than the marginal social cost. D) marginal private cost is greater than the marginal social cost.
What do antitrust laws enable the government to do?
a. Break up large firms into smaller ones b. Acquire a controlling percentage of large firms c. Require firms to sell off profitable operations d. Block all mergers and acquisitions by foreign firms
In 2012, government income transfers redistributed what percentage of national income?
a. 1.1 percent b. 7.7 percent c. 17.4 percent d. 25.5 percent