Why Is It Unlikely That Tax Increases Will Be the Way

question 37

Multiple Choice

Why is it unlikely that tax increases will be the way to eliminate current U.S. federal budget deficits?

• A)Increasing every worker's taxes by the same amount could eliminate the deficit, but it is likely this action would be viewed as too burdensome for workers with modest incomes.
• B)The revenues generated by increasing taxes on the rich would only pay for a small portion of the federal budget deficit in any recent year.
• C)Since World War II, on average when taxes were increased by a dollar, federal government spending increased by that much and more.
• D)All of the above.

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Definitions:

Semantic Memory

A type of long-term memory involving the capacity to recall words, concepts, and general facts that are not tied to specific experiences.

Long-term Potentiation

A lasting increase in signal transmission between two neurons, believed to be a cellular mechanism for learning and memory.

Implicit Memory

A type of long-term memory that is not consciously recalled but influences thoughts, behaviors, and skills without one's awareness.

Retrieval Cue

Stimuli or hints that can help in the recall of memories by making them more accessible.