The federal government could stimulate investment spending by
A. phasing out the depreciation allowance on corporate income taxes.
B. reducing subsidies to businesses.
C. reinstating the windfall profits tax.
D. reducing the tax rate on capital gains.
Answer: D
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One of the major insights by economist John Maynard Keynes about production was that:
A. firms may not produce all they can at a given price, but what they can sell. B. firms generally produce as much as they can at a given price. C. government spending needs to be kept in check in order for the economy to operate efficiently. D. household spending patterns don’t really influence the health of the economy.
All of the following are point sources, EXCEPT
a. publicly-owned treatment works (POTW) b. factory smokestack b. recreational motor boat d. urban runoff
Which one of the following is not an excise tax of the federal government?
A. Gasoline tax B. General sales tax C. Tobacco tax D. Alcoholic beverage tax
When an investor buys a corporate bond
A) the investor becomes part owner of the corporation. B) the principal of the bond is a loan to the corporation. C) the interest made on the bond represents the bondholder's limited liability in the company. D) the face value of the bond is equal to what the investor paid for the bond.