Refer to the Following Figure When Answering the Following Questions

question 8

Multiple Choice

Refer to the following figure when answering the following questions.
Figure 18.2: Government Outlays and Receipts as a Percentage
of GDP, 1947-2012
-Consider Figure 18.2. What was the cause of the huge budget deficit beginning in 1981?

• A) the oil crisis
• B) the Great Recession
• C) President Reagan's defense expenditures and tax cuts
• D) the first Gulf War
• E) the Volcker recession

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Definitions:

Materially

In a significant or substantial manner, especially in a way that affects a contract or legal decision.

Bailment

A legal relationship where physical possession of personal property is transferred from one person to another with the understanding that the property will be returned.

Sale

A contract in which ownership of goods is transferred by the seller to the buyer for a price.

Title

Legal ownership of property, especially real estate or automobiles.