What Is the Largest Source of Revenue for the Federal

question 204

Multiple Choice

What is the largest source of revenue for the federal government?

• A) Social Security taxes
• B) corporate income taxes
• C) personal income taxes
• D) sales tax

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Definitions:

Tax Revenue

The income that the government receives from taxpayers, including both individuals and businesses, used to fund public services and infrastructure.

Multiplier Effect

The relative rise in total income resulting from an additional expenditure.

Chain Reaction

A sequence of reactions where a reactive product or by-product causes additional reactions to take place.

Recessionary Gap

The gap that occurs when an economy's actual output is less than its potential output, indicating underutilized resources.