Which of the following best illustrates the use of discretionary fiscal policy?
a. Congress providing $1 billion in relief aid for hurricane victims
b. Congress appropriating $400 million to help the needy and the appropriation being financed by a tax on wealth
c. Income tax receipts being smaller because of a decline in real GDP during a recession
d. The Federal Reserve tightening credit when it receives news of accelerating inflation
e. Congress passing a bill authorizing $2 billion in additional spending when it receives news of a deepening recession
e
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If a monopolistic competitor is maximizing profit, it is producing at a point where marginal cost
A. Equals average total cost. B. Equals price. C. Is less than price. D. Is greater than price.
Consider two people, Sandy Smith, who earns $25,000 . and Gary Carver, who earns $50,000 . If the government has decided to tax everyone's first $25,000 at 20 percent and everyone's second $25,000 at 40 percent, then Gary pays:
a. $10,000 in taxes and Sandy pays $5,000 in taxes. b. $10,000 in taxes and Sandy pays $10,000 in taxes. c. $15,000 in taxes and Sandy pays $5,000 in taxes. d. $15,000 in taxes and Sandy pays $10,000 in taxes. e. $17,000 in taxes and Sandy pays $5,000 in taxes.
Risk is:
A. why the changing value of money is such a challenge. B. to always be avoided, at any cost. C. when the costs or benefits of an event or choice are uncertain. D. None of these statements is true.
A bank is said to be recapitalized when some investor, private or government, provides new equity capital in return for partial ownership.
Answer the following statement true (T) or false (F)