Statement I: in the Mid-1990s,before the Passage of the Welfare

question 267

Multiple Choice

Statement I: In the mid-1990s,before the passage of the Welfare Reform Act of 1996,our poverty rate was the highest in history.
Statement II: The welfare rolls began falling two years before the passage of the Welfare Reform Act of 1996.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

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Definitions:

Efficient Economy

An economic system in which resources are allocated in the most productive way, maximizing the output of goods and services.

Federal Reserve Notes

The official currency issued by the Federal Reserve System in the United States, commonly known as dollars.

Fiat Money

Money not redeemable for any commodity; its status as money is conferred initially by government decree but eventually by common experience.

Fiat Money

Currency that has value and is legally recognized for transactions solely because of a government decree, without backing by a physical commodity.