The Kennedy Administration Was Not Concerned About the Possible Negative

question 35

Multiple Choice

The Kennedy administration was not concerned about the possible negative effect of large tax cuts because:

• A) the tax cuts were initially designed to be temporary.
• B) the ensuing federal deficit would disappear as government programs would be cut too.
• C) the assassination of President Kennedy became a much more serious issue.
• D) the ensuing federal deficit was projected to disappear as higher tax revenues would follow from faster GDP growth.

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue.

Maturing Debt

Debt that is due for repayment within the next fiscal year or operating cycle, whichever is longer.

Earnings per Share

A financial metric that calculates the portion of a company’s profit allocated to each outstanding share of common stock, indicating company profitability.

Dividend Yield

The ratio of a company's annual dividend payments to its share price, indicating the earnings from investment in stocks as a percentage.