In 1994, Republicans Introduced Their "Contract with America

question 34

Multiple Choice

In 1994, Republicans introduced their "Contract with America". This plan:

• A) included a PAYGO rule.
• B) introduced a balanced- budget amendment to the Constitution.
• C) would allow for more policy fine tuning.
• D) would restrict the ability of monetary policy to affect the economy in the short run.
• E) would make the Federal Reserve even more independent than it already is.

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Definitions:

Federal Government

The national government of a federated state, which holds the authority to govern at a national level as distinct from regional or local levels.

Average Tax Rate

The fraction of total income that is paid as taxes, calculated by dividing the total amount of taxes paid by the taxpayer's total income.

Marginal Tax Rate

The rate at which the last dollar of a person's income is taxed, indicating how much tax will be paid on an additional dollar of income.

Income Before Taxes

The gross income a person or corporation earns before taxes are deducted.