Which of the following accounted for over 85 % of our trade deficit in goods and services in 2009?

From 1960 to 1980, federal government spending on national defense _____

a. declined from about half to less than one quarter of all expenditures b. declined from one-third to less than one quarter of all expenditures c. increased from about half to nearly 60 percent of all expenditures d. increased from about one quarter to nearly one-half of all expenditures

According to the Keynesian view, if real GDP is slowing and the economy appears to be headed for a recession, a reduction in tax rates is

a. highly appropriate because it will stimulate aggregate demand and, thereby, help to strengthen the economy. b. highly inappropriate because it will either reduce the size of the budget surplus or increase the size of the deficit. c. not very important because the "demand stimulus effects" of the tax cut will be largely offset by additional borrowing. d. not very important because the "demand stimulus effects" of lower current taxes will be largely offset by the expectation of higher taxes in the future.