All of the following are tools of fiscal policy except one. Which is the exception?
a. Taxes
b. Transfer payments
c. Interest rates
d. Government purchases of goods
e. Government purchases of services
c
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The production possibilities frontier in Figure 3-1, using a move from point B to point D as an example, shows
A. a constant slope. B. the principle of comparative advantage. C. the principle of increasing costs. D. an inefficient allocation of resources.
A ________ system is one in which households pay the same percentage of their incomes in taxes regardless of their income level
A) progressive B) regressive C) proportional D) complementary
An increase in the price of a product
A) automatically increases wages. B) raises the firm's demand for labor. C) would probably decrease total revenues. D) increases productivity.
A tax is progressive if the ratio of taxes to income rises as income rises
a. True b. False Indicate whether the statement is true or false