During the deliberations on fiscal stimulus in 2009, the debate over fiscal policy focused on
a. the multiplier effect of tax cuts versus higher government spending.
b. the multiplier effect of different types of tax cuts.
c. the incentive effects of tax cuts.
d. all of the above
d
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Indicate whether the statement is true or false
What percentage of federal spending was financed by borrowing during 2009-2010?
a. approximately 10 percent b. approximately 20 percent c. approximately 40 percent d. more than 50 percent
Under a regressive tax system, the marginal tax rate for high income taxpayers is
a. higher than the marginal tax rate for low income taxpayers. b. the same as the marginal tax rate for low income taxpayers. c. lower than the marginal tax rate for low income taxpayers. d. Any of the above could be true under a regressive tax system.
If price decreases by 10 percent and quantity demanded increases by 2 percent, the price elasticity of demand will be
A. 5. B. 20. C. 2. D. 0.2.