Statement I: Foreign Aid Is the Fourth Largest Federal Spending

question 2

Multiple Choice

Statement I: Foreign aid is the fourth largest federal spending program.
Statement II: Most Americans pay more in Social Security taxes than in federal personal income taxes.

• 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:

Price Mechanism

The system by which the forces of supply and demand determine the prices of goods and services.

Usury Laws

Regulations governing the maximum interest rates that can be charged on loans, intended to protect consumers from excessively high rates.

Usury Law

Legislation that sets the maximum interest rates that can be charged on loans, intended to protect consumers from excessively high rates.

Quantity of Money

The total amount of money (currency, coins, and checking deposits) in circulation within an economy.