Which of the Following Is Likely to Push the Federal

question 2

Multiple Choice

Which of the following is likely to push the federal debt increasingly higher in the coming decades?

• A)a strong rebound from the recession of 2008-2009
• B)increased expenditures on the Social Security and Medicare programs
• C)an increase in tax revenues as the baby boom generation retires
• D)increased political pressure to balance federal budgets

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Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed by the government.

Deferred Income Taxes

Taxes applicable to income that are due in the future periods due to temporary differences between the tax base of assets or liabilities and their carrying amount in the financial statements.

Operating Income

The profit realized from a business's core operating activities, excluding non-operating income, taxes, and interest expenses.

Tax Rate

The percentage at which an individual or corporation is taxed, which can vary based on income levels, jurisdictions, and specific types of taxes.