Which of the Following Statements Best Characterizes the Percentage of Federal

question 33

Multiple Choice

Which of the following statements best characterizes the percentage of federal government revenue that comes from social insurance and corporate taxes since 1960?

• A)Social insurance and corporate taxes each compose roughly the same share of federal revenues that they did in 1960.
• B)Social insurance taxes still compose roughly the same share of federal revenues that they did in 1960, but corporate taxes compose a much larger share of federal revenues.
• C)Social insurance taxes now compose a much smaller share of federal revenues than they did in 1960, but corporate taxes still compose roughly the same share of federal revenues.
• D)Social insurance taxes now compose a much greater share of federal revenues than they did in 1960, while corporate taxes compose a much smaller share of federal revenues.

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Definitions:

Duration

Duration measures a bond's sensitivity to interest rate changes, representing the weighted average time until a bond's cash flows are paid to the investor.

Annual Pay

The total monetary compensation an employee receives from their employer in a one-year period, including all forms of salary, bonuses, and other financial benefits.

Asset Portfolios

Collections of various types of investments held by individuals or institutions to diversify risk and achieve financial goals.

Duration

A measure of the sensitivity of the price of a bond or other debt instrument to changes in interest rates, expressed in years.