Which of the Following Helped Transform the Budget Deficits of the Early

question 48

Multiple Choice

Which of the following helped transform the budget deficits of the early 1990s into surpluses later in the decade?

• A)rapid growth in the number of persons moving into the retirement phase of life during the 1990s
• B)a reduction in defense expenditures following the end of the Cold War
• C)a 1997 increase in the tax rate imposed on income derived from capital gains
• D)a reduction in Social Security and health-care benefits during the 1990s

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