Issues Such as the Environment, Health Care, Retirement Benefits, and Taxation

question 59

Multiple Choice

Issues such as the environment, health care, retirement benefits, and taxation are on the political agenda in the United States because

• A) these are the only issues that are important to all Americans.
• B) these are the only problems that have yet to be solved by the free market.
• C) contemporary political parties mainly compete for the support of middle-class Americans and these issues are important to the middle class.
• D) the Constitution limits the federal government's powers to legislating on these issues.
• E) these are the only issues where Democrats and Republicans consistently agree with each other.

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Definitions:

Investment

Assigning funds with the anticipation of creating income or achieving financial gain.

Loanable Funds

The total funds available from savers for borrowing in the financial markets, used for investments, purchasing goods, or other purposes.

Private Investment

Spending by businesses or individuals on capital goods, such as factories, machinery, and homes, which is used to produce goods or services.

Demand For Loanable Funds

The total quantity of loans that borrowers are willing to take out at various interest rates, holding all else equal.