The federal income tax is a good example of a
a. regressive tax.
b. proportional tax.
c. digressive tax.
d. progressive tax.
d
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Assume a money multiplier of 4 and a government expenditure of $20 million. If the Treasury borrows $20 million from the banking system while the banks have excess reserves, the money supply will
A) rise by $5 million. B) rise by $20 million. C) rise by $80 million. D) not be affected.
While marketable pollution permits may ________ the total amount of pollution, they may ________ pollution in local areas.
A. increase; decrease B. decrease; increase C. decrease; not change D. not change; increase
It is the responsibility of the Trading Desk at the Federal Reserve Bank of New York to implement policies in the form of
A. changes in the spread between the federal funds rate and the discount rate that are consistent with rules established by the twelve Federal Reserve bank presidents. B. changes in foreign exchange rates that are consistent with policies established by the Secretary of the Treasury. C. buying or selling government securities that are consistent with the FOMC Directive. D. variations in reserve requirements that are consistent with the announcements by the Chair of the Fed's Board of Governors.
When the economy is below full employment, it is producing
A. Inside the production possibilities curve. B. On the production possibilities curve. C. Beyond the production possibilities curve. D. None of the choices are correct.