Figure 10-3 -Refer to Figure 10-3.Which of the Following Is Consistent with Is

question 77

Multiple Choice

Figure 10-3
-Refer to Figure 10-3.Which of the following is consistent with the graph depicted above?

• A)Taxes are changed so that real interest income is taxed rather than nominal interest income.
• B)An expected recession decreases the profitability of new investment.
• C)The government runs a budget deficit.
• D)Technological change increases the profitability of new investment.

---

Definitions:

President

The elected head of a republican state.

Congress

The legislative branch of the United States federal government, composed of the House of Representatives and the Senate, responsible for making federal laws.

Incumbents

Current holders of a political office or position, often enjoying advantages in elections due to their existing name recognition and record.

Congressional Elections

The process through which members of the United States Congress (both the House of Representatives and the Senate) are elected by voters.