Kayla,an Economist,is Interested in Knowing If Government Deficits Have Been

question 52

Multiple Choice

Kayla,an economist,is interested in knowing if government deficits have been a factor in explaining rapid money growth in her country in the past twenty years.What ratio should Kayla examine?

• A)The ratio of money to the monetary base
• B)The ratio of currency to demand deposits
• C)The ratio of money to government debt
• D)The ratio of government debt to GDP

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Definitions:

Alimony Payment

Payments made to a spouse or ex-spouse under a divorce or separation agreement, potentially deductible for the payer.

Deductible Student Loan Interest

Refers to the interest paid on a qualified student loan which may be deducted from income when calculating federal income tax.

Self-Employed Health Insurance

A tax deduction available to self-employed individuals for premiums paid on medical, dental, and long-term care insurance for themselves and their dependents.

Above-The-Line

refers to deductions that taxpayers are allowed to subtract from gross income to arrive at the adjusted gross income, which are beneficial as they are not subject to itemized deductions limitations.