The U.S. government, which relies primarily on inelastic sources of revenue such as income taxes, is the least efficient at generating revenue, while at the same time it is the level of government most relied upon to deliver costly social services

Consider the feature box, "The Game, the Rules, the Players: How Washington Dealt with the Financial Crisis." Which of these statements best characterizes the effects of the recent economic crisis?

a. Americans have greater trust in the ability of corporations to be self-regulating. b. Most small businesses have experienced renewed prosperity and growth. c. The Federal Reserve has kept interest rates high to encourage economic investment. d. The overall influence of the federal government in the economy has increased.

Why has federal spending generally increased over the years?

a. because Democrats in Congress will not cut the defense budget b. because of uncontrollables like discretionary spending c. because of uncontrollables like mandatory spending d. because the income tax rate in the United States is too high