What, according to the textbook, accounts for the federal budget surplus in the late 1990s?
A) A move toward virtue on Capital Hill
B) Strong economic growth during that period
C) Huge increases in tax rates
D) A successful beggar-thy-neighbor strategy
B
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To maintain a functioning gold standard:
A) nations are obliged to exchange any amount of issued paper money for gold. B) paper money is not allowed; all transactions must be in coins or gold. C) the monetary authority cannot exchange currency for gold. D) care must be taken to keep inflation under 10%.
The federal government's fiscal policy (taxing and spending policy) during the 1920s was one in which
(a) the federal budget was in surplus every year. (b) the federal budget exerted a mildly deflationary impact on the economy, tending to slow overall spending in the economy. (c) Parkinson's third law, "expenditures rise to meet income," seemed to hold for the federal government. (d) all of the above applied.