19) A major problem with deflation is that:

(no explanation required)

nominal wages are rising throughout the economy

tax rates increase as the deficit expands

declining asset values lead to more bankruptcies

the money supply is increasing too rapidly

20) The impact on the federal budget of surplus payroll taxes for Social Security is:

(no explanation required)

zero since taxes are used to pay Social Security benefits

irrelevant because it is an off-budget item

to reduce the reported deficit

to increase the reported deficit