The Gramm-Rudman-Hollings Act of 1985 Created a

question 68

Multiple Choice

The Gramm-Rudman-Hollings Act of 1985 created a

• A)Deficit ceiling.
• B)Debt ceiling.
• C)Mandated balanced budget by 2005.
• D)Prohibition against external financing of the debt.

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Definitions:

Saving

The process of setting aside a portion of current income for future use or investment.

Capital Income

Income generated through investments, such as dividends from stocks, interest from bonds, or rent from real estate, as opposed to earned income from labor.

Taxed Twice

A situation where the same income or financial transaction is subject to taxation twice, often seen with corporate dividends taxed at both the company level and again at the shareholder level.

Egalitarian Society

A community or society in which social equality in terms of wealth, status, and power is emphasized and maintained.