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:

Commercial Paper

An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories, and meeting short-term liabilities.

Negotiable

Able to be bargained or exchanged with flexibility, often used in the context of financial instruments or agreements.

Instrument

A formal legal document that records a legally enforceable act, transaction, or agreement.

Bearer Instrument

A negotiable financial instrument that denotes ownership to whoever physically holds it.