Indirect taxes are levied on specific economic activities

The federal government has a Constitutional requirement to operate a balanced budget each fiscal year

Indicate whether the statement is true or false

The experience of Paul Volcker's fight against inflation during the late 1970s and early 1980s indicates that firms and workers

A) had adaptive expectations. B) had rational expectations and that they trusted Fed announcements. C) preferred high unemployment to high inflation. D) Both A and B are correct answers.