In 2010, the Co-Chairmen of President Obama's Deficit Reduction Commission

question 129

Multiple Choice

In 2010, the co-chairmen of President Obama's deficit reduction commission proposed curtailing or eliminating many tax deductions such as the one for mortgage interest. Economists who favor the proposal argue that it would
(i) correct a misallocation of resources because too much of the economy's capital stock is tied up in residential housing and too little is invested in corporate capital.
(ii) cut both spending and taxes.
(iii) encourage private philanthropy.

• A)(i) only
• B)(ii) only
• C)(i) and (ii) only
• D)(i), (ii), and (iii)

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Definitions:

Isolationism

A foreign policy strategy characterized by a country's decision to minimize its involvement in international affairs, focusing instead on its own national interests and advancement.

Foreign Policy

The strategies, decisions, and actions a country adopts in its dealings with other countries to achieve its national objectives.

Corporativism

An ideological and social system advocating the organization of society by corporate groups, such as agricultural, labor, military, or scientific affiliations.

Billy Sunday

An influential American evangelist during the late 19th and early 20th centuries known for his fiery sermons and mass conversions.