Homework Answers
1. Option 2. An individual's annual income
Explanation: A person is required to pay income tax based on his/her annual income.
2. Option 1. Domestic private investments fall
Explanation: When the government borrows more, the interest rate goes up.
3.
- Increase in government spending
- Reduction in taxation
Explanation: In expansionary fiscal policy, the government either spends more or lowers taxes or do both.
4.
- Increase in government spending
- Reduction in taxation
Explanation: In expansionary fiscal policy, the government either spends more or lowers taxes or do both.
5. None of the above
Explanation: The government needs to spend more on infrastructure
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An individual income tax is a tax on: Select the correct answer below: o the profits...
1. When the government increases spending by issuing more bonds, it causes: a) nations currency to...
1. When the government increases spending by issuing more bonds, it causes: a) nations currency to appreciate b)exports increase c)interest rates decrease d)demand for loanable funds decrease e)decreases merchandise trade deficit 2. When the Fed decreases money supply to combat inflation, it cuases: a)the price of the U.S. dollar to decrease b) capital to flow out of the US c)an increase in the merchandise trade deficit d)an increase in private spending e) a decrease in the interest rates 3. Which...
Answer all of them or do not answer Q8. Why does balance of payment always balance...
Answer all of them or do not answer
Q8. Why does balance of payment always balance even when balance of trade may not be in balance? How does the US government pay for its chronic trade deficit of over $400 billion per year for so many years? Does this trade deficit matter in the long run? 09. How can monetary policy actions reduce the trade deficit? How might the increase in budget deficit from expansionary fiscal policy increase the trade...
Which of the following examples illustrates the "individual income tax" Select the correct answer below: The...
Which of the following examples illustrates the "individual income tax" Select the correct answer below: The tax paid by an individual when purchasing groceries The tax refund received after filing a federal income tax return The FICA tax levied on an individual's monthly wage The tax an individual pays when importing a car from Europe .
QUESTION 1 Which of the following is an example of an automatic fiscal policy stabilizer? a....
QUESTION 1 Which of the following is an example of an automatic fiscal policy stabilizer? a. Tax revenues fall as real GDP decreases. b. Congress decides to cut spending on national defense. c. Congress cuts individual income tax rates. d. Tax revenues rise after Congress raises corporate tax rates. QUESTION 7 When a country's economy is producing at a level that is less than its potential GDP, the standardized employment deficit will show a ________ than the actual deficit. a....
1. When countries have severe debt problems: fiscal policy is an especially good idea. expansionary fiscal...
1. When countries have severe debt problems: fiscal policy is an especially good idea. expansionary fiscal policy can reduce real growth. it makes no difference for fiscal policy. they can continue to borrow forever without any adverse consequences. 2. Increases in government spending financed through additional borrowing will typically: lead to higher taxes. lead to higher interest rates. stimulate both consumption and investment. provide more stimulus than when government spending is financed through higher taxes. 3. In a recession, automatic...
What effect does a contractionary fiscal policy have on the federal budget and private investment? Select...
What effect does a contractionary fiscal policy have on the federal budget and private investment? Select the correct answer below: It increases the surplus, leading to crowding out. It decreases the surplus, leading to crowding in. It increases the deficit, and crowds out private investment. It decreases the deficit, and encourages private investment.
7. Consider a closed economy where the marginal propensity to consume is 0.85. Technological progress increases...
7. Consider a closed economy where the marginal propensity to consume is 0.85. Technological progress increases GDP by 20 billion pesos. Expansionary fiscal policy results in a $10 billion decrease in tax revenue and a $12 billion increase in the government budget deficit. (a) Calculate the (dollar) change in government spending. (b) Calculate the approximate (dollar) changes in private, public, and na- tional saving (c) Will the equilibrium real interest rate increase, decrease, or stay the same? Use a supply-demand...
Please just help spent the semester in the hospital and apparently have to do an assignment.....
Please just help spent the semester in the hospital and
apparently have to do an assignment..
11. Government spending and taxation changes that cause fiscal policy to be expansionary when the economy contracts and contractionary when the economy expands are known as: A) discretionary fiscal policy. B) automatic stabilizers. autonomous spending policies. destabilizing fiscal policies. 12. 4) The government budget balance equals: taxes plus government purchases plus government transfers. taxes minus government purchases minus government transfers. taxes minus government purchases...
What is crowding out? O a reduction in consumption and investment spending that results from government...
What is crowding out? O a reduction in consumption and investment spending that results from government borrowing O a reduction in consumption and investment spending that results from increased international trade O a reduction in government borrowing resulting from increases in consumption and investment spending O a reduction in investment, but not consumption, that results from government borrowing O a reduction in consumption, but not investment, that results from government borrowing are a mechanism by which crowding out occurs. OIncreases...
QUESTION 17 Pasedonia is going through a recession. To fight the recession their house of Congress...
QUESTION 17 Pasedonia is going through a recession. To fight the recession their house of Congress has passed a bill to increase infrastructure spending—but the legally required environmental impact report for each new project will take at least two years to complete before any building can begin. Identify the problem described in this scenario that limits the fiscal policy A administrative lag OB. Operational lag Crowding out OD Recognition lag QUESTION 18 If there was a change in investment spending...
Answer all of them or do not answer
Q8. Why does balance of payment always balance even when balance of trade may not be in balance? How does the US government pay for its chronic trade deficit of over $400 billion per year for so many years? Does this trade deficit matter in the long run? 09. How can monetary policy actions reduce the trade deficit? How might the increase in budget deficit from expansionary fiscal policy increase the trade...
7. Consider a closed economy where the marginal propensity to consume is 0.85. Technological progress increases GDP by 20 billion pesos. Expansionary fiscal policy results in a $10 billion decrease in tax revenue and a $12 billion increase in the government budget deficit. (a) Calculate the (dollar) change in government spending. (b) Calculate the approximate (dollar) changes in private, public, and na- tional saving (c) Will the equilibrium real interest rate increase, decrease, or stay the same? Use a supply-demand...
Please just help spent the semester in the hospital and
apparently have to do an assignment..
11. Government spending and taxation changes that cause fiscal policy to be expansionary when the economy contracts and contractionary when the economy expands are known as: A) discretionary fiscal policy. B) automatic stabilizers. autonomous spending policies. destabilizing fiscal policies. 12. 4) The government budget balance equals: taxes plus government purchases plus government transfers. taxes minus government purchases minus government transfers. taxes minus government purchases...
What is crowding out? O a reduction in consumption and investment spending that results from government borrowing O a reduction in consumption and investment spending that results from increased international trade O a reduction in government borrowing resulting from increases in consumption and investment spending O a reduction in investment, but not consumption, that results from government borrowing O a reduction in consumption, but not investment, that results from government borrowing are a mechanism by which crowding out occurs. OIncreases...
QUESTION 17 Pasedonia is going through a recession. To fight the recession their house of Congress has passed a bill to increase infrastructure spending—but the legally required environmental impact report for each new project will take at least two years to complete before any building can begin. Identify the problem described in this scenario that limits the fiscal policy A administrative lag OB. Operational lag Crowding out OD Recognition lag QUESTION 18 If there was a change in investment spending...
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