Taxes and Govt. Spending
Tax Deadline
What is fiscal policy?
Manipulation of government spending and taxes to stabilize domestic output, employment, and the price level
Does the spending multiplier effect state that a change in spending causes a larger change in the economy?
Yes
Means of payment
Chairman of the FED
Jerome Powell
Progressive tax structure is?
Pay more or less taxes due to income level
The following characteristics fit which policy?
-Increase road construction projects
-Decrease FICA tax
-Deregulating the mortgage industry
Expansionary Fiscal Policy
MPS and MPC combined have to equal
1.0
Comparing the prices of the same product at different stores would be an example of?
Unit of Account
Reserve district Houston is in
Dallas
What is porkbarreling
Legislators put small local projects in bills to get passed
Suppose that the economy is in the midst of a recession. Which of the following policies would be consistent with active fiscal policy?
A reduction in federal tax rates on personal and corporate items
If a nation's MPC is .5 and the government increases its taxes by $3 Billion, how much does the economy change by?
3 Billion decrease
If a currency is accepted throughout the entire country than it would be?
Acceptable
Inflation hits 6%, GDP has grown 4.7% this quarter, the FED can fix this by
Raise the reserve requirement
Ex. of tax being the same for everyone
Sales Tax
Which is a fiscal policy decision to move an economy out of a recession
Cutting taxes to put more money in consumer pockets
A nation's MPS is .4 and the government increases spending by $10 billion, what's the total change on the economy?
25 Billion
The reserve requirement is 10%, if $1,000 is deposited, the reserve requirement will increase by__________. The total loans created will be _________.
$100 ; $9,000
What fills in #1 to complete the series of events
1_______________
2. Banks give less loans
3. Money Multiplier Decreases
4. Substantial decrease in money supply
Sale of bonds