The Great Recession of 20072009 and the financial crisis of 2008 increased the budget deficit because of:
a. an increase in the tax rates for high-income households.
b. a sudden increase in terrorist attacks and anthrax scares in the economy.
c. low interest rates that crowded out private investment.
d. discretionary tax cuts and greater outlays on unemployment benefits.
e. greater outlays on national defense spending.
Question 2
Since World War II, the consumer price index has increased by an average of _____.
a. 1.4 percent per year
b. 2.1 percent per year
c. 6.4 percent per year
d. 5.6 percent per year
e. 3.5 percent per year
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