The annual budget deficit grew from 80 billion in 1981 to 290 billion in 1992 . Which of the following was NOT a factor in increasing the deficit?
A. large tax cuts in 1981-1983
B. Increased levels of defense spending in the 1980s
C. federally funded bailout of savings and loan institutions
D. federal spending on programs such as crime, transportation and education
Carl contracts to sell his house and lot to Winifred for 30,000 . The terms of the contract call for Winifred to pay 5 percent of the purchase price as a deposit toward the purchase price, or a down payment. The terms further stipulate that should the buyer breach the contract, Carl will retain the money as damages. What type of damages does this agreement exemplify?
a. Compensatory c. Nominal
b. Punitive d. Liquidated
A federal commission that investigated the cause of the 2008 economic crisis concluded that
a. the financial collapse was unavoidable and could not have been prevented.
b. the cause of the financial collapse was rooted in bad taxation policies.
c. government could not be held accountable for the financial collapse.
d. it was an avoidable disaster caused by failure of government regulation, bad corporate management, and bad decisions by Wall Street.
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