Which of the following is considered contractionary fiscal policy?
A) Congress increases the income tax rate.
B) Congress increases defense spending.
C) Legislation removes a college tuition deduction from federal income taxes.
D) The New Jersey legislature cuts highway spending to balance its budget.
Answer: A
You might also like to view...
The amount that a hospital will be paid for treating a Medicare patient is determined
a. before the patient ever sees a physician. b. at the time of admission to the hospital. c. at the point when the diagnosis is made. d. after medical services are provided. e. after the hospital bill is reviewed by Medicare auditors.
Unlike a perfectly competitive firm, a monopolistically competitive firm
a. faces a perfectly inelastic demand curve. b. can earn positive economic profit in the short run and in the long run. c. cannot earn positive economic profit even in the short run. d. has a negatively sloped demand curve.
Suppose farmers get together and decide to be less productive. They want to do this so that they can shift the supply curve of farm products leftward and raise the price. They must be assuming that the demand curve between the current price and the higher price is
A) inelastic. B) elastic. C) unit elastic. D) There is not enough information to answer this question.
Malthus predicted that:
A. income would eventually grow faster than population, so per capita income would eventually begin to increase. B. population and income would eventually grow at the same rate, so per capita income would increase over time. C. population and income would eventually grow at the same rate, so per capita income would eventually be constant. D. population would eventually grow faster than income, so per capita income would eventually begin to decrease.