Which of the following events occurred during the 2000 to 2005 time-frame and had an important impact on the deficit/surplus projections?
A. The steep decline in taxable capital gains that resulted from declines in the Stock Market from March 2000 to the end of 2002
B. The decrease in unemployment rates from 2002 to 2003
C. The increase in interest rates from 2001 to 2003
D. The increase in inflation rates from 2000 to 2002
Answer: A
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Because firms are willing to hire additional workers at lower wages, the market labor demand curve is
A. Upward-sloping. B. Downward-sloping. C. Vertical. D. Perfectly elastic.
Which of the following will not cause the demand curve for athletic shoes to shift?
A. A change in tastes for athletic shoes B. Widespread advertising campaign for athletic shoes C. Increase in money incomes of athletic-shoes consumers D. Expectations that the price of athletic shoes will decrease in the future E. A decrease in the price of athletic shoes
Each of the following played a role in causing the savings and loan associations to go bankrupt in the 1980s except
A. laws restricting assets S & Ls could purchase. B. organized crime. C. real estate speculators. D. junk bond purchases.
Diseconomies of scale occur
A. only in the long run. B. because of fixed costs. C. only in the short run. D. none of these.