Economic expansion and growth are the only objectives that U.S. policymakers consider when they implement tax, spending and financial policies that affect the U.S. economy.
Answer the following statement true (T) or false (F)
False
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In economics, money is defined as
A) any asset people generally accept in exchange for goods and services. B) the total amount of salary, interest, and rental income earned during a year. C) the total value of one's assets minus the total value of one's debts, in current prices. D) the total value of one's assets in current prices.
Keynes thought that the key to determining the broader economic effects of investment fluctuations
A) was to examine how businesses react to flexible prices and wages. B) was to closely regulate the real interest rate. C) was to understand the relationship between how much people earn and their willingness to engage in personal consumption spending. D) was to understand how changes in the money supply influences consumption decisions.
According to the Laffer Curve
a) Tax revenue always increases as tax rates rise b) Tax revenue always falls as tax rates rise c) Tax revenue initially rises with the tax rate but when tax rates get too high revenue begins to fall d) Tax revenue initially falls with the tax rate but when tax rates reach some optimal level revenue begins to rise e) Tax revenue is unrelated to the tax rate
The case against economic growth is often made using which of the following arguments?
A. Limiting growth will contribute to more income equality across nations. B. Economic growth will contribute to more economic security, but it will also produce more boring life styles. C. Economic growth permits us to "make a living," but it does not provide us with "the good life." D. Common property resources need to be protected by the price system.