Which of the following policies would a Keynesian expect to produce the largest increase in income?
A. A reduction in government spending of $100 billion
B. An increase in transfer payments of $100 billion
C. An increase in government spending of $100 billion
D. A tax cut of $100 billion
Answer: C
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What would happen if three more restaurants opened in a small town where only four restaurants were open for business originally?
A. People would pay higher prices to eat out. B. The town would raise significantly more taxes. C. The restaurants would become more like a competitive market. D. The restaurants would form a cartel in the town.
A candidate in the 1992 presidential election argued that our current federal income-tax system should be replaced with a flat-tax. That is, every individual should pay the same percentage of income in federal taxes regardless of his or her income
Evaluate the merits of this policy. In your answer, be sure to include a discussion of both the equity and efficiency considerations of such a tax proposal.
The Securities and Exchange Commission (SEC) oversees the regulation of the securities market.
Answer the following statement true (T) or false (F)
In utilizing unconventional monetary policy in 2010, the Federal Reserve purchased
a. real estate worth more than $2 trillion. b. $800 billion in Treasury bills. c. over $1 trillion in mortgage backed securities. d. $600 billion in long-term Treasury bonds.