The political process by which fiscal policy is made
A) is relatively rapid, contributing to the effectiveness of fiscal policy.
B) requires only that the president approve changes to the budget, a decision that takes several months.
C) is efficient in reaching a decision within a year.
D) is slow and results in a long time lag for fiscal policy.
D
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Exemptions, deductions, and tax credits can lower a taxpayer's taxable income. Discuss their relative merits in terms of helping taxpayers reduce their tax liability
What will be an ideal response?
______ is the percentage change in hours worked divided by the percentage change in wages—will determine the shape of the labor supply curve.
a. Elasticity of savings b. Cross-price elasticity of demand c. Income elasticity of demand d. Wage elasticity of labor supply
The most effective way to reduce our current account deficit would be to
A. lower our service trade deficit. B. lower our merchandise trade deficit. C. raise our capital account surplus. D. lower our capital account surplus.
Mutual funds are attractive because:
A. they usually have inside information because they run most of the companies they invest in. B. they have inside information that is not available to other investors. C. they provide high returns from purchasing the financial securities of a few select companies. D. they provide the investor with greater diversification at a lower cost than what most investors could obtain individually.