The federal government decides to impose a hefty tax on the sale of cars.a) What is the effect on the number of cars sold?The number of cars sold would (Click to select)b) As the result of the tax, the government collects more revenue. Whathappens to the budget deficit?The budget deficit would (Click to select)c) What is the effect of the tax in interest rates?The tax would cause interest rates to (Click to select)1 of 19NextPrey10:17 PM10/5/2019ర

Answer - Part (a) -Answer - As federal government decides to impose a hefty tax on the sale of…

Answered: The federal government decides to…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If you voted for your committees to increase overall spending under your jurisdiction, resulting in a budget deficit for the overall federal budget, what would you expect to see happen to the national debt?
The budget function for the economy of Sunsville is T - G = -400 + 0.25Y.a) Suppose income is $4,000. What is the value of the budget surplus or deficit?b) What range of income will give Sunsville a budget surplus?c) What range of income will give Sunsville a budget deficit?d) At what level of income will there be a balanced budget?
If the primary deficit of a government budget is $2300 and the interest on payment of it is $100 find the fiscal deficit?
David Rubenstein mentions that stock and bond traders are not presently very worried about the increase in the federal deficit. However, he adds that they might become more concerned in six to twelve months. The accompanying diagram shows the market for loanable funds. Use the graph to show the effect of an increase in the federal deficit on this market. Real interest rate (%) Loanable funds ($) Supply Demand Why might traders be worried about the deficit increasing? The resulting change in the interest rate stocks and bonds - less valuable. will make
Based on your calculations, the government is running a budget surplus or or deficit?
There is a federal budget deficit when the government spends less that it collects in taxes. the government spends more that it collects in taxes. taxes are too high. the government spends the same amount it collects in taxes.
When governments run budget deficits, how do they make up the differences between tax revenue and spending?
According to the textbook, which of the following statements is (are) correct?(x) As a nation gets richer, the government typically takes a larger share of income in taxes. (y) In 1902 the government (federal, state and local) in the U.S collected about 7 percent of total income in taxes and in current times, it collects around 26 percent of income in taxes (z) In the early 2000s, the U.S had a larger tax burden, as a percent of income, then all of the major economies in Europe. (x), (y) and (z) (x) and (y) only (x) and (z) only (y) and (z) only (z) only
Question 5 Which of the following BEST shows fiscal policy? The Federal Reserve buys bonds. The United States increases trade with China. Oc The Central Bank decides to print more money. Congress passes a decrease in taxes. ©2021 Illuminate Educatin
SS#14-C- The National Debt (Sources: "Financing the National Debt," ch. 13 p. 348-349/357-358; "Debt Ceiling," ch. 13 p. 353/359-360) 13. If the federal government has a budget deficit in one fiscal year: a. the federal government must raise taxes to pay off the deficit. b. the federal government must either cut spending or raise taxes to pay off the deficit. C. the interest rate on U.S. government bonds must increase. d. the national debt will increase by the amount of the budget deficit. 14. The national debt is the: difference between a nation's exports and imports of goods and services sum of the personal debt of all citizens in the United States C. total amount owed by the federal government to owners of government securities d. difference between the government's revenues and expenditures in one fiscal year a. b. SS#14-D-The Debate over Deficits and the Debt (Sources: "Why Worry over the National Debt?" text ch. 13 p. 353-363/362-372; "Three Questions," p. 4 of SS#14) 15. Each…
Budget deficit is defined as the difference between government spending and tax revenues. As President Clinton once stated, dealing with the budget deficit is simple "arithmetic". We need to cut government spending and increase tax revenues to lower the deficit. 1. If you are one of the policy makers determined to control the federal budget, which federal spending item(s) would you cut? 2. How would you change the tax policy to increase the tax revenue? Would you increase the income tax rate or decrease it to increase revenue (review the Laffer curve and comment on the relationship between the tax rate and and tax revenue)? How would you change the payroll tax? Who should have the burden of tax? Please review the 2018 Trump tax law and Biden administrations tax proposals. Below are two short videos: One supports the tax cuts, the other opposes. Tax cuts will spark growth and employment (Laffer) Six things we'll regret about Trump tax cuts 3. What is the impact of Covid-19 on the budget…
Debt is the same as the deficit. good if it increases productivity more than the debt payment. increased by a budget surplus. bad in all cases.

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