Question 1

An increase in government taxes and transfer payments would be an:

Accepted Answer

A)   inconsistent fiscal policy.
B)   appropriate fiscal policy for dealing with cost-push inflation.
C)   appropriate fiscal policy for dealing with demand-pull inflation.
D)   appropriate fiscal policy for dealing with high rates of unemployment.E) B) and C)
F) B) and D)

Question 2

A policy of reducing or eliminating a tax that would normally be charged is:

Accepted Answer

A)   roll down.
B)   tax buyback.
C)   tax abatement.
D)   illegal in most states.E) B) and C)
F) A) and D)

Question 3

Fiscal policy tools include changes in each of the following EXCEPT:

Accepted Answer

A)   taxes.
B)   interest rates.
C)   transfer payments.
D)   government expenditures.E) A) and B)
F) None of the above

Question 4

A progressive tax is one:

Accepted Answer

A)   where the rate charged on a particular level of income increases each year.
B)   that supports economic progress by giving tax relief to high growth areas of the economy.
C)   that is moved from state to state so that no one group is unfairly burdened with its payment.
D)   where there is a direct relationship between the percentage of income taxed and the size of the income.E) C) and D)
F) A) and C)

Question 5

The greatest expansionary effect on the economy would result from:

Accepted Answer

A)   a decrease in taxes of $100 million.
B)   an increase in transfer payments of $100 million.
C)   an increase in government purchases of $100 million.
D)   any of the three; they all have the same impact on the economy.E) A) and C)
F) C) and D)

Exam 6: The Role of Government in the Macroeconomy

Fiscal policy tools include changes in each of the following EXCEPT:

Correct Answer
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A policy of reducing or eliminating a tax that would normally be charged is:

Correct Answer
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An increase in government taxes and transfer payments would be an:

Correct Answer
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The greatest expansionary effect on the economy would result from:

Correct Answer
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A progressive tax is one:

Correct Answer
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Exam 6: The Role of Government in the Macroeconomy

Fiscal policy tools include changes in each of the following EXCEPT:

Correct AnswerverifiedShow Answer

A policy of reducing or eliminating a tax that would normally be charged is:

Correct AnswerverifiedShow Answer

An increase in government taxes and transfer payments would be an:

Correct AnswerverifiedShow Answer

The greatest expansionary effect on the economy would result from:

Correct AnswerverifiedShow Answer

A progressive tax is one:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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