Tax Expenditures

question 40

Multiple Choice

Tax expenditures

• A)were declared unconstitutional by the Supreme Court in 2015.
• B)have no impact on the revenue coming in to the national treasury each year.
• C)cost the national treasury over $1.2 trillion in foregone revenues each year.
• D)contribute over $1.2 trillion in revenue to the national treasury each year.

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Definitions:

Beta

An assessment of how the risk or instability of a portfolio or security stacks up against the broader market.

Annualized Return

The geometric average amount of money earned by an investment each year over a given time period.

Boeing

A global American corporation engaged in designing, manufacturing, and selling airplanes, rotorcraft, rockets, satellites, missiles, and telecommunications equipment around the world.

Random Walk

A theory suggesting that the price movements of securities are unpredictable and random, making it impossible to consistently predict their future movements based on past trends.