The budget deficits of the 1980s and early 1990s differ from others in the post-World War II era in that they were
a. a result of the Fed rather than a change in fiscal policy.
b. temporary rather than structural, and pose no threat to the economy.
c. not contracted to fight a war or end a recession.
d. contracted as part of a program to plan the economy.
c
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Everything else held constant, a stronger dollar benefits ________ and hurts ________
A) American businesses; American consumers B) American businesses; foreign businesses C) American consumers; American businesses D) foreign businesses; American consumers
Which of the following would most likely occur if the federal government increased its spending and enlarged the size of the budget deficit during a period of full employment?
a. The rate of inflation would decline. b. The r ate of inflation would rise. c. A recession would develop. d. Interest rates would fall.
Which of the following explains why pork-barrel spending is often approved, even when the spending is inefficient?
a. Each representative has little incentive to oppose pork-barrel spending since the tax savings would accrue to taxpayers throughout the nation. b. General opposition to pork-barrel spending by a legislator would make it more difficult for the legislator to arrange for pork-barrel projects that provide concentrated benefits for his district. c. Logrolling increases the likelihood that pork-barrel projects will be approved. d. All of the above are correct.
The total burden of the tax is
A. the excess burden created by the tax minus the revenue collected from the tax. B. the sum of the revenue collected by the tax and the excess burden created by the tax. C. the revenue collected from the tax minus the excess burden created by the tax. D. the ratio of the revenue collected and the excess burden created by the tax.