The annual budget deficit grew from 80 billion in 1981 to 290 billion in 1992 . Which of the following was NOT a factor in increasing the deficit?
A. large tax cuts in 1981-1983
B. Increased levels of defense spending in the 1980s
C. federally funded bailout of savings and loan institutions
D. federal spending on programs such as crime, transportation and education
Question 2
Carl contracts to sell his house and lot to Winifred for 30,000 . The terms of the contract call for Winifred to pay 5 percent of the purchase price as a deposit toward the purchase price, or a down payment. The terms further stipulate that should the buyer breach the contract, Carl will retain the money as damages. What type of damages does this agreement exemplify?
a. Compensatory c. Nominal
b. Punitive d. Liquidated
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