Taxation
type of tax is imposed on individuals and businesses
What is income tax?
the financial plan that outlines government revenue and expenditure for a specific period
What is a budget?
the total amount of money a government owes to creditors, typically in the form of government bonds
What is debt?
What are short-term government securities sold at a discount and do not pay interest
What are treasury bills?
This term refers to the difference between your assets and liabilities, representing your net worth
What is net worth?
higher-income individuals pay a higher percentage of their income
What is a progressive tax?
Increased government borrowing can lead to higher interest rates, reducing private sector borrowing
What is crowding out?
accounting period is used by governments for budgeting and financial reporting
What is the fiscal year?
What term refers to the total payment, including both interest and principal, that a government must make on its outstanding debt
What is debt service?
This type of account allows you to earn interest on your savings while keeping your money easily accessible
What is a savings account?
all individuals or businesses pay the same percentage of their income
What is flat tax
According to this curve, what is the optimal tax rate that maximizes government revenue
What is the laffer curve?
type of tax that is levied on the profits of businesses
What is corporate tax?
What is the portion of a nation's debt that is owed to its own citizens and entities within the country
What is domestic debt
The amount of money you earn before taxes and other deductions is known by this term
What is gross income?
Tax imposed on goods and services
What is sales tax ?
the term for the difference between government expenditures and revenues in a fiscal year
What is deficit?
set of policies is designed to boost economic activity during a downturn, often involving increased government spending and tax cuts
What is a stimulus package?
What is the assessment of a government's or a country's creditworthiness called
What is credit rating?
The three-digit number that reflects your creditworthiness, based on your credit history and financial behavior.
What is a credit score?
tax system where lower-income individuals pay a higher percentage of their income
What is regressive ?
These government policies automatically adjust in response to economic conditions.
What is Automatic Stabilizers?
policy that involves reducing government spending and increasing taxes to reduce budget deficits
What is austerity?
When a government is unable or unwilling to meet its debt obligations, what is it called
What is sovereign default
A diversified investment vehicle that pools funds from many investors to invest in a variety of assets, managed by a professional.
What is a mutual fund?