Which Statement Is an Example of an Economic Trend

question 45

Multiple Choice

Which statement is an example of an economic trend?

• A)The Federal Reserve announces that it will decrease the interest rate charged to banks.
• B)Congress passes legislation that increases the tax rate on corporations.
• C)A new computer chip is announced which will allow for miniaturization of many electronic devices.
• D)The E.U.declares an increase in tariffs on all agricultural goods.

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Definitions:

Local Taxes

Taxes imposed by local governments, such as cities or counties, used to fund public services like education, police, and infrastructure.

Social Security Tax

Taxes collected from employees and employers to fund the Social Security program, which provides retirement, disability, and survivor benefits.

Federal Budget

The government’s estimation of revenue and spending for a forthcoming fiscal year that includes allocations of funds to various federal departments and agencies.

Defense Spending

Government expenditure on military forces and activities, including salaries, equipment, construction, and research and development.