If aggregate output is falling, _____
a. federal budget deficit decreases
b. tax revenue increases
c. automatic stabilizers will tend to increase the size of the deficit
d. automatic stabilizers will tend to decrease the size of the deficit
e. transfer payments decrease as fewer people become eligible for public assistance
c
You might also like to view...
There are different interest rates associated with many types of securities. Which of the following statements is correct?
A) they vary depending on the liquidity of the security B) they vary depending on the risk associated with the security C) except in very unusual times, most interest rates move together D) all of the above E) none of the above
If you were a professor of economics explaining to your class the three primary tools of monetary policy used by the Fed, you would write on the chalk board
a. changes in the legal reserve requirement, changes in the discount rate, and changes in tax rates b. changes in the legal reserve requirement, changes in tax rates, and open market operations c. changes in tax rates, changes in the discount rate, and open market operations d. changes in the legal reserve requirement, open market operations, and moral suasion e. changes in the legal reserve requirement, changes in the discount rate, and open market operations
Define the types of principles of taxation, and illustrate with examples the different types of existing tax systems based on these principles
Which of the following economic functions does the U.S. government perform?
A. collects taxes B. provides services C. issues regulations D. The U.S. government performs all of these tasks