The question "What is the best tax base?" is a normative question.
Answer the following statement true (T) or false (F)
True
You might also like to view...
If the tariff on computers is not changed, but the government then adds hitherto nonexistent tariffs on imported semi-conductor components, then the effective rate of protection in the computer industry will
A) increase. B) decrease. C) remain the same. D) depend on whether computers are PCs or "Supercomputers." E) no longer apply.
Monetary policy is defined as:
A. The actions Congress takes to manage tax policy and interest rates B. The actions Congress takes to manage the money supply and interest rates C. The actions the federal reserve takes to manage the money supply and interest rates
During a contraction,
A) higher income tax revenues tend to automatically increase a budget deficit or reduce a budget surplus. B) higher income tax revenues tend to automatically increase a budget surplus or reduce a budget deficit. C) lower income tax revenues tend to automatically increase a budget deficit or reduce a budget surplus. D) lower income tax revenues tend to automatically increase a budget surplus or reduce a budget deficit.
Assume that full-employment real GDP is Y = $1,200 billion, the current equilibrium real GDP is Y = $800 billion, and the MPC is 0.50. What level of aggregate expenditures will close the recessionary gap?
A. $80 billion. B. $140 billion. C. $200 billion. D. $400 billion.