Nondiscretionary Fiscal Policy works by having
A. Congress and the President agree upon a tax cut to stimulate growth.
B. progressive income tax rates take a portion of increased income thereby dampening periods of growth.
C. welfare programs reduce spending on people when they have increased incomes, thereby dampening periods of economic growth.
D. both progressive income tax rates take a portion of increased income and welfare programs reduce spending on people when they have increased incomes thereby dampening periods of economic growth.
Answer: D
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Which of the following shifts the supply curve for gasoline rightward?
A) a situation in which the quantity demanded exceeds the quantity supplied B) an increase in the price of gasoline C) a decrease in the price of a resource used to produce gasoline, such as crude oil D) an increase in the demand for gas-guzzling, sport utility vehicles
Which of the following expenditures is included in the consumption component of the gross domestic product (GDP)?
a. The money spent on the purchase of stocks b. The money spent on the purchase of used furnitures c. The money spent on the purchase of a used car d. The money spent on the purchase of kitchen appliances e. The money spent on the purchase of bonds issued by the government
The current value of the marginal product of land influences the
a. demand for land. b. equilibrium rental price of land. c. equilibrium purchase price of land. d. all of the above.
Game theory is best applied to the analysis of:
A. oligopoly. B. monopoly. C. perfect competition. D. All of the statements associated with this question are correct.