A Possible Explanation for the Persistence of the U

question 49

Multiple Choice

A possible explanation for the persistence of the U.S.federal budget deficits is that:

• A)it is easier politically to increase government spending than to decrease taxes.
• B)it is easier politically to decrease government spending than to decrease taxes.
• C)it is easier politically to increase government spending than to increase taxes.
• D)the economy naturally tends toward recessions.
• E)the economy naturally tends toward full employment.

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Definitions:

Inequality

The unequal distribution of resources, opportunities, rights, and powers among people in a society.

Moral Consent

The agreement or approval given willingly by an individual who has assessed the moral implications of an action or decision.

Authority

The recognized power or right of an individual or institution to make decisions and enforce obedience.

Progressive Tax

A taxation system where the tax rate increases as the taxable amount (income or profits) increases, placing a larger financial responsibility on wealthier individuals.