Which of the Following Factors Did Not Contribute to the Federal

question 118

Multiple Choice

Which of the following factors did not contribute to the federal budget surpluses in the 1990s?

• A)Higher taxes on the rich
• B)More federal government spending discipline
• C)Market globalization
• D)Slower consumer spending
• E)Rising business optimism based on technological innovation

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Definitions:

Merchandise Trade

The act of buying, selling, or exchanging goods and commodities across domestic or international borders.

Merchandise Trade Deficit

A situation where a country's imports of goods exceed its exports of goods, leading to a negative balance in trade for merchandise.

Overall Trade Deficit

The scenario where a country's total imports exceed its total exports, indicating a negative balance of trade.

Trade Deficit

A trade deficit occurs when a country imports more goods and services than it exports, resulting in a negative balance of trade.