17 of 25 If the federal government increases govemment spending to increase aggregate demand and does so by increasing the tax rates imposed on consumers and firms, which causes consumption spending and investment to decrease, this is known as O the crowding out effect. O implementation lag O legislative lag. O excise tax.

17 of 25 If the federal government increases govemment spending to increase aggregate demand and does so by increasing the tax rates imposed on consumers and firms, which causes consumption spending and investment to decrease, this is known as O the crowding out effect. O implementation lag O legislative lag. O excise tax.

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter11: Fiscal Policy

Section: Chapter Questions

Problem 1.4P

See similar textbooks

Similar questions

What would happen if expansionary fiscal policy was implemented in a recession but, due to lag, did not actually take effect until after the economy was back to potential GDP?
Economics The marginal propensity to consume is 0.8, the marginal tax rate is 02. and the marginal propensity to import is 0.14. The price level is fixed. The autonomous tax muluplier is If the autonomous tax by the equilibrium real GDP by O A. decreases; 20, increases; 32 O B. increases; 12; increases: 30 O C. decreases; 20, increases; 60 OD. increases: 12; decreases, 30 O E. decreases; 30; decreases; 48 34
QUESTION 16 If the marginal propensity to save is 0.1, the marginal propensity to import is 0.1 and the marginal tax rate is 0.2, how much would consumption increase if income rises by £8billion? O a. 4.8 O b. 13.3 O c. 3.2 O d. 20 4
Figure 8-23. The figure represents the relationship between the size of a tax and the tax revenue raised by that tax. 6 on4m21 3 Tax Revenue B Tax Size Refer to Figure 8-23. If the economy is at point A on the curve, then a small increase in the tax rate will O increase the deadweight loss of the tax and increase tax revenue. O increase the deadweight loss of the tax and decrease tax revenue. decrease the deadweight loss of the tax and increase tax revenue. O decrease the deadweight loss of the tax and decrease tax revenue.
13. Which fiscal policy would make a budget surplus larger or a budget deficit smaller? O lower taxes O increase in government purchases of goods and services O lower government transfers O higher interest rates
Plz answer all questions I will give you upvote
9
3
can you answer this please
37
If people expected that a fiscal policy in the form of a tax cut was temporary, then this policy's effect on the economy will tend to be: Select one: O a. Stronger O b. Weaker O c. The exact opposite of what was intended O d. As the multiplier effect would predict O e. None of the choices
The figure shows government expenditure and revenue as a percentage of GDP, 1990-2019. During which of the following periods did the federal government run a budget surplus? 27.0% 25.0% -Expenditures 23.0% 21.0% 19.0% Receipts 17.0% 15.0% YEAR O 1998-2001 None of these answers is correct. O 2003-2008 2012-2018 PERCENT OF GDP 0661 1991 1993 1994 9661 2661 6661 0007 2002 2003 2005 9007 2008 6007 2011 2012 2014 2015 2017 2018