What Forces Combined in 2007 to Bring About the Worst

question 11

Multiple Choice

What forces combined in 2007 to bring about the worst economic downturn since the Great Depression of the 1930s?

• A) Hurricane Katrina and the resulting bailout to homeowners
• B) Bipartisan support of the wars in Iraq and Afghanistan
• C) Predatory mortgage lending and irresponsible dealing on Wall Street
• D) The election of the nation's first Black president and a Republican legislature

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Definitions:

Regressive Tax

A tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases, disproportionately affecting lower-income individuals.

Tax Payments

The compulsory contributions to state revenue levied by the government on workers' income and business profits or added to the cost of some goods, services, and transactions.

International Trade

The exchange of goods and services across international borders or territories, involving imports and exports.

U.S. GDP

The total market value of all goods and services produced within the United States over a specific time period.