Which of the Following Contributed to the Turn-Around in the Government

question 127

Multiple Choice

Which of the following contributed to the turn-around in the government budget from a surplus in the early 2000s to record deficits by the end of the decade?

• A) An increase in household saving.
• B) An increase in business saving.
• C) An increase in tax revenues because of a recession.
• D) An increase in government spending on homeland security and wars.

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Definitions:

Economic Loss

A situation where the costs of a business, sector, or economy exceed its revenues, leading to a negative financial result.

Marginal Analysis

An approach in economics used to examine the benefits and costs of an additional unit of production or action.

Annual Membership

A subscription or fee paid once a year to belong to a club, organization, or service, granting the member certain privileges, services, or access.

Crowded

A situation where a location or market is overly saturated with participants, leading to increased competition or decreased comfort.