State income tax revenues are much less than sales tax revenues.
Answer the following statement true (T) or false (F)
True
State governments rely heavily on sales taxes while their effective income tax rates are less than 2 percent.
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Even if the Fed could completely control the money supply, monetary policy would have critics because
A) the Fed is asked to achieve many goals, some of which are incompatible with others. B) the Fed's goals do not include high employment, making labor unions a critic of the Fed. C) the Fed's primary goal is exchange rate stability, causing it to ignore domestic economic conditions. D) it is required to keep Treasury security prices high.
Even though households do not actually purchase certain items, the government estimates and adds to the consumption component what the household would pay for these items in the marketplace. An example of this type of item is
a. a car that an individual builds from parts of old cars b. food that a farm family grows for themselves c. a pond that a household member digs by hand d. police and fire protection e. a barn that a household builds on their own property
The default rate actually drops as the amount borrowed increases, that is, default rates are highest among those with the smallest student loan debts.
Answer the following statement true (T) or false (F)
If the multiplier is 3, then the MPC is
a. 1/3. b. 3/4. c. 4/3. d. 2/3.