A cut in taxes will have a greater impact on aggregate demand if it is given to: a. people with a low MPC b. people with a high MPC c. everyone in the economy d. those who hold a large amount of wealth   The government budget balance equals:  a. taxes + government purchases + government transfers b. taxes - government purchases - government transfers c. taxes - government purchases + government transfers

Q: In the context of fiscal policy, what is a budget surplus? A. Government spending exceeds government…

A: Fiscal policy is a basic part of an administration's procedure for dealing with its economy. It…

Q: Match the term to the definition: Government spending is less than tax revenue for the fiscal year…

A: Tax revenue is the income that is gathered by governments through taxation. Taxation is the…

Q: in a government budget, revenue deficit is $50,000 and borrowing are $75000.  How much is the fiscal…

A: If the government goes over its budget and spends more than what it actually receives as revenue,…

Q: i) Calculate total government expenditures. ii)Calculate total government spending. iii)Is the…

A: Government expenditure and spending are one and the same thing. Government expenditure = Government…

Q: Explain the role of the Presidency and the Congress in the budget proces

A: A budget process refers to the mechanism by which a budget is generated and approved by government.

Q: Under which condition the fiscal policy has the maximum effect on real national income? Sketch graph…

A: Fiscal policy, measures used by governments to stabilize the economy, specifically by manipulating…

Q: Which of the following is NOT a discretionary fiscal policy A. Making automatic stabilizers more…

A: Fiscal policy refers to the impact on the economy that is produced by governmental spending and…

Q: 1. The economy starts out with a balanced Federal budget. If the government opts to implement…

A: Fiscal policy refers to the policy of the government to control the money supply in the economy.…

Q: If a government is using fiscal policy, this means that it is using. economy. spending; interbank…

A: Fiscal policy is a macroeconomic tool used by governments to regulate their spending and taxation…

Q: 52. An example of nondiscretionary fiscal policy would be a. The operation of the welfare state b. A…

A: The expenditures in an economy are made by various entities in the economy, such as the expenditures…

Q: Which of the following will not undermine the effectiveness of fiscal policy, and prevent it from…

A: Fiscal policy refers to the use of government spending, taxation, and borrowing to influence the…

Q: Government spending in Robok is $90 billion, and its only tax is an income tax with a marginal tax…

A:

Q: the governament budget constrant: deficits,debts,spending and taxes kindly explain them

A: Meaning of Government Budget: The term government budget refers to a budget statement under which…

Q: Suppose that the government decreases its autonomous spending by $100 billion and also decreases its…

A: Gross domestic product is the sum of a country's final goods and services. The increase in GDP…

Q: Fiscal stance refers to: Select one: A. A government that takes a tough stance when it comes to…

A: Fiscal policy refers to government actions that result in a change in the level of economic activity…

Q: The following graph shows the loanable funds market. For each of the given scenarios, adjust the…

A: Loanable Funds Market: In the market for loanable funds there are economic agents like governments,…

Q: Someone answer this question asap A major side-effect of a stimulating fiscal policy is that it…

A: Fiscal policy will increase the government deficit . It will lead to increasing the government…

Q: Calculate the budgetary deficit in a country where the total expenditure is $19,000 million and…

A: The information being given is:- Total expenditure = $19,000 million Total receipts = $7600 million…

Q: Which of these is MOST LIKELY to occur after the government increases taxes?   A.) Consumer…

A: When taxes are increased, consumers' spending reduces as disposable income falls. Consumers are left…

Q: What does an increase in the income tax rate​ illustrate? An increase in the income tax rate is an…

A: What does an increase in the income tax rate​ illustrate? In general, [income] tax rate increases…

Q: Title Actions by the Federal Government that decrease the progressivity of the tax system: a.…

A: Tax system of a country refers to the process through which the tax has been collected by the…

Q: 1. Why is a $100 billion increase in government spending on goods and services more expansionary…

A: In an economy, a 1% change in government spending will have different impact on the real GDP as…

Q: Which of the following statements about the Canadian federal budget is FALSE? A. Currently, Canada…

A: A federal budget is a yearly gauge of the revenue and expenditures of a federal government. It is a…

Q: Government spending in Robok is $140 billion, and its only tax is an income tax with a marginal tax…

A: here we calculate the following terms by using the given information , so the calculation of the…

Q: If the MPS in an economy is 0.2. What is the tax multiplier? Group of answer choices a. 4 b. 5 c. -4…

A: Tax multiplier = - (1 - MPS) / MPS = - (1 - 0.2) / 0.2 = - 0.8 / 0.2 = - 4

Q: When the government spends more than it takes in taxes it must borrow money to finance its…

A: When the state spends more than tax collection, the budget is said to be in deficit. When the state…

Q: When governments run budget deficits, how do they make up the differences between tax revenue and…

A: A government budget is a statement of its planned expenditures and revenue receipts for a given time…

Q: Describe the role of the budget in fiscal policy

A: Fiscal policy is the use of public funds and tax assessments to affect the economy. Governments…

Q: discretionary

A: In an economy, government imposes taxes on the citizens to make different types of economic…

Q: the governament budget constrant: deficits,debts,spending and taxes kindly explain each of them in…

A: The government(G) budget-constraint is an equation(eqn) that links monetary-choices of money-growth…