What Was the Significance of the Federal-Aid Highway Act (1956)

question 13

Multiple Choice

What was the significance of the Federal-Aid Highway Act (1956) ?

• A) It was vetoed by Eisenhower because it was too expensive, which turned much of Congress against him early on in his presidency.
• B) It was a joint project with Canada, which led to a closer relationship between the two countries especially in the face of the cold war.
• C) It forced private businesses to repair deteriorating highways without drawing from federal taxes or other government funds.
• D) It created a large network of interstate highways, which in turn helped create jobs, tourism opportunities, and economic growth.
• E) It is largely regarded as the greatest failure of Eisenhower's administration and went uncompleted due to a lack of funds.

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Definitions:

National Income

The total amount of money earned within a country, including wages, rent, interest, and profit, reflecting the overall economic activity.

Unemployment

Refers to the situation where individuals who are capable of working and are actively seeking employment cannot find a job.

Automatic Stabilizers

Tools in fiscal policy that adjust spending and taxes automatically to buffer against economic cycles, reducing the effects of inflation and recession.

Tax Credits

Amounts subtracted directly from the taxes owed to the government, incentivizing certain economic activities or investments.