Under Paul Volcker, the Fed reduced the inflation rate in the early 1980s by more than 10 percentage points, causing: unemployment to decrease. Housing prices to soar and interest rates to remain high. GDP growth rise to 6% and consumer confidence to grow. a serve recession to take place. A monetary contraction is most successful when it is credible, namely when: disinflation supersedes inflation. the effect of fiscal policy is weakening. Market participants expect the central bank to carry through its tough stance. Market participants are uncertain about the current state of the economy. Which of the following sources of tax revenues make up more than 90% of all government revenue? individual income tax, corporate income tax, and excise taxes corporate income tax, Social Security and Medicare taxes, and estate taxes individual income tax, corporate income tax, and Social Security and Medicare taxes corporate income tax, Social Security and Medicare taxes, and excise taxes Which of the following accounts for the largest source of tax receipts for the U.S. federal government? excise tax corporate income tax Social Security tax individual income tax As income rises, the marginal tax rate for married couples: decreases smoothly. decreases in steps. increases smoothly. increases in steps. The alternative minimum tax: is the tax rate paid on an additional dollar of income. has higher tax rates on people with higher incomes. is the total tax payment divided by total income. is a separate income tax code that began in 1969 to prevent the rich from no paying income taxes