Statement 1: in 2002 and 2003,state After State Slashed Services

question 7

Multiple Choice

Statement 1: In 2002 and 2003,state after state slashed services and raised taxes.
Statement 2: Through the 1970s,the 1980s,and the 1990s,state governments ran substantial budget deficits.

• 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:

Supply Slopes

This term might be mistaken, but it likely refers to the representation of supply in economics, which traditionally slopes upward on a graph, indicating that as prices increase, suppliers are willing to provide more goods.

Financial Intermediaries

Entities such as banks and credit unions that serve as middlemen in financial transactions, facilitating funds' flow between savers and borrowers.

Bond Buyer

An investor or entity that purchases bonds, which are debt securities issued by corporations or governments.

Interest Rate

It refers to the profit or cost of borrowing capital, typically expressed as an annual percentage.