Which of the following would be an example or result of expansionary fiscal policy in action?
a. an increase in taxation
b. a decrease in government purchases
c. a budget deficit
d. a budget surplus
c
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A proportional tax is a tax whose rate increases as the tax base widens
a. True b. False Indicate whether the statement is true or false
The GDP of an economy is accurately calculated when: a. the values of both intermediate and final goods are included
b. the values of both intermediate and final goods are excluded. c. the value of intermediate goods are included, while the value of final goods are excluded. d. the value of final goods are included, while the value of intermediate goods are excluded.
There are several government agencies in the United States that regularly check the balance sheets of banks. This is done to ensure that: a. banks take on risky projects that will earn high returns. b. banks have a positive net worth. c. banks earn sufficient profits
d. banks lend to customers with poor credit ratings.
If a tax is levied on the sellers of a product, then there will be a(n)
a. downward shift of the supply curve. b. upward shift of the supply curve. c. decrease in quantity supplied. d. increase in quantity supplied.