The Great Recession of 20072009 and the financial crisis of 2008 increased the budget deficit ...

The Great Recession of 20072009 and the financial crisis of 2008 increased the budget deficit because of:
 a. an increase in the tax rates for high-income households.
 b. a sudden increase in terrorist attacks and anthrax scares in the economy.
  c. low interest rates that crowded out private investment.
 d. discretionary tax cuts and greater outlays on unemployment benefits.
  e. greater outlays on national defense spending.

QUESTION 2

Since World War II, the consumer price index has increased by an average of _____.
 a. 1.4 percent per year
  b. 2.1 percent per year
  c. 6.4 percent per year
  d. 5.6 percent per year
  e. 3.5 percent per year

QUESTION 3

Official figures indicate that the percentage of persons below the poverty level in the U.S. is more today than it was in 1959.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 4

The federal budget surplus recorded in 1998 resulted from a(n):
 a. decrease in taxes and rapid growth in federal outlays.
  b. increase in taxes and sluggish growth in federal outlays.
  c. decrease in taxes and a decrease in federal outlays.
 d. increase in federal outlays and taxes.
 e. increase in export earnings and decrease in import bills.

QUESTION 5

Since 1980, _____ has experienced deflation.
 a. the U.S.
 b. France
 c. Germany
  d. Japan
 e. Italy