Explain the causes of the economic problems in Texas in the 1980s.Whatdid state leaders do in response and how has the nature of the Texas economy changed as a result?
What will be an ideal response?
Answer: An ideal response will:
1. Explain the historic dependence of the Texas economy on the oil and gas industry and identify a drop in oil prices as a major cause for economic downturn.
2. Identify Mexican currency rates and weather (freeze) as additional causes of economic downturn.
3. Explain the concept of diversification and identify growth in new sectors as ways in which diversification occurred.
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Lowering the discount rate would have which of the following effects?
a. It would decrease the overall rate of taxation. b. It would discourage banks from increasing their borrowing from the Federal Reserve. c. It would encourage banks to borrow more and to extend more loans at lower rates. d. It would increase the amount of federal bonds sold to foreign countries.
Elites disagree about the "ends,"or political policy, and agree on the "means," or the intricate details and implementation of the policy
Indicate whether the statement is true or false