Which one of the following is an example of discretionary fiscal policy used to correct an inflationary gap?
A. an agreement among major banks to lower interest rates
B. decrease in the money supply by the Federal Reserve
C. an increase in government expenditures approved by Congress
D. a tax increase passed into law by Congress
Answer: D
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Those who will lose from free trade are ________ factors in sectors that produce goods that are ________
A) immobile; also imported B) mobile; also imported C) immobile; exported D) mobile; exported E) mobile; untraded
In national income accounting, the value of worn out or obsolete capital is represented by
A) depreciation. B) transfer payments. C) disposable income. D) dividends.
Taxpayers would be better off if a tax could just raise revenue without ______
a. altering the relative prices they face b. altering their preferences for a good c. tax shifting d. any income effects
The major advantage of the flat tax is its
a. simplicity. b. progressively. c. fairness. d. use of tax credits.