Under the U

question 71

Multiple Choice

Under the U.S. macroeconomic policy package of 1965-1968, President Lyndon Johnson backed an increase in U.S. government spending that was financed by

• A) the sale of gold reserves.
• B) borrowing from the International Monetary Fund.
• C) an increase in the money supply.
• D) an increase in taxes.
• E) selling bonds in the international capital market.

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Definitions:

Capital Income

Income generated through investments, such as dividends from stocks, interest from bonds, or rent from real estate, as opposed to earned income from labor.

Taxed Twice

A situation where the same income or financial transaction is subject to taxation twice, often seen with corporate dividends taxed at both the company level and again at the shareholder level.

Egalitarian Society

A community or society in which social equality in terms of wealth, status, and power is emphasized and maintained.

Saving

The act of not spending a portion of income and setting it aside for future use, often in a deposit account or as an investment.