Give two significant examples to illustrate each of the ways in which the federal government affects the political economy of the United States.
What will be an ideal response?
The ideal answer should include:
1. Example 1: In 2017, the Trump administration signed the Tax Cuts and Jobs Act. It cut individual income tax rates, doubled the standard deduction, and eliminated personal exemptions. The Act cut the corporate tax rate from 35% to 21% beginning in 2018. This was done in order to stimulate corporate investment and, to a lesser extent, individual investment and spending.
2. Example 2: The Federal Reserve sets interest rates in response to inflation. When the Fed is concerned about prices rising too fast, it will raise rates. And when inflation is "anemic," it will lower them to prompt more borrowing activity. In general, adjusting the interest rates represents one way in which the government responds to economic conditions such as economic downturns, market crashes, or high inflation.
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In a debate between Antonin Scalia and Stephen Breyer, Scalia calls for a "_______________ _____________" of the law to keep the Supreme Court from becoming a political body while Stephen Breyer advocates a "_____________ _____________" to invoke active liberty; an active and constant participation in collective power.
Fill in the blank(s) with the appropriate word(s).
Which of the following is a challenge to the sustainability of current Swedish social welfare policies?
A. Immigration B. Low birth rates C. Changes in family structures D. Aging population E. All of the above