Which of the following fiscal policy changes would be the most contractionary?
A. A $40 billion increase in taxes
B. A $10 billion increase in taxes and a $30 billion cut in government spending
C. A $20 billion increase in taxes and a $20 billion cut in government spending
D. A $30 billion increase in taxes and a $10 billion cut in government spending
B. A $10 billion increase in taxes and a $30 billion cut in government spending
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Special taxes levied on earnings for Social Security and Medicare are called
A) an unfair tax on low-income families. B) an exception tax for corporations. C) a social insurance tax. D) a withholding tax on wages.
If you know that with 8 units of output, average fixed cost is $40 and average variable cost is $25, then total cost at this output level is:
a. $320 b. $200 c. $520 d. $1000
In 2007, the U.S. sold $73 million of cigarettes to Iran. Iran paid for these cigarettes using
A) dollars. B) rials, the Iranian currency. C) euros. D) pounds.
The presence of wage and price controls in the United States during WWII:
A. helped to reduce the inflationary pressures created by contractionary fiscal policy. B. had little impact on inflation because of the Depression. C. helped to reduce the inflationary pressures created by expansionary fiscal policy. D. was not successful in reducing inflation during this period.