ECO 100 QUIZ 8
Mrs.bankZ
eco100quiz8.docxWhich of the following terms is used to describe the set of policies that relate to government spending, taxation, and borrowing?
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financial policies |
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monetary policies |
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fiscal policies |
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economic policies |
What do goods like gasoline, tobacco, and alcohol typically share in common?
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A progressive tax is imposed on each of them. |
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A regressive tax is imposed on each of them. |
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They are all subject to government excise taxes. |
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They are all subject to government fiscal taxes. |
A typical ____________________________ fiscal policy allows government to decrease the level of aggregate demand, through increases in taxes.
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expansionary |
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contractionary |
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discretionary |
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standardized |
A(n) ________________________________ is calculated as a flat percentage of income earned, regardless of level of income.
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progressive tax |
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regressive tax |
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proportional tax |
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estate and gift tax |
When the share of individual income tax collected by the government from people with higher incomes is smaller than the share of tax collected from people with lower incomes, then the tax is ____________________.
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optional |
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proportional |
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progressive |
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regressive |
When the interest rate in an economy increases, it is likely the result of either:
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a decrease in the government's budget surplus or an increase in its budget deficit. |
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a decrease in the government budget surplus or its budget deficit. |
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an increase in the government budget surplus or a decrease in its budget deficit. |
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an increase in the government budget surplus or its budget deficit. |
When governments are borrowers in financial capital markets, which of the following is least likely to be a possible source of the funds from a macroeconomic point of view?
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central bank prints more money |
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increase in household savings |
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decrease in borrowing by private firms |
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foreign financial investors |
A reduction in government borrowing can:
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decrease the incentive to invest. |
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increase the interest rate. |
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crowd out private investment in human capital. |
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give private investment an opportunity to expand. |
If the government initiates an expansionary monetary policy at the same time that its budget deficit decreases, then the interest rate will ______________________.
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increase |
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either increase or decrease |
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decrease |
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remain unchanged |
When the interest rate in an economy decreases, it is most likely as a result of:
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an increase in the government budget surplus or its budget deficit. |
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a decrease in the government budget surplus or its budget deficit. |
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an increase in the government budget surplus or a decrease in its budget deficit. |
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a decrease in the government budget surplus or an increase in its budget deficit. |
