Fiscal Policy

Front

Which of the following is discretionary spending, which can be adjusted yearly through the appropriations process?
Medicare,
Social Security benefits,
Interest on the national debt,
National defense

Back

National defense

Front

If the economy is producing too much, what type of fiscal policy can help cool off an over-heated economy?

Back

Contractionary fiscal policy

Front

Which of the following is an example of expansionary fiscal policy? Increased government spending, Reducing transfer payments, Raising income taxes, Reducing federal health care coverage

Back

Increased government spending

Front

Which of the following would have a more direct impact on the U.S. economy when the economy is producing less than it is capable of?
Options: Lowering income tax rates, Providing stimulus checks for all Americans, Increasing government spending on infastructure, Lowering payroll taxes

Back

Increasing government spending on infastructure

Front

The U.S. federal income tax is

Back

Progressive

Front

Issues with successfully implementing fiscal policy include lags (or delays in time)

Back

lags (or delays in time)

Front

Fiscal policy is

Back

Keynesian

Front

What are automatic stabilizers?

Back

Changes in tax revenues and government spending that automatically occur without any action by Congress.

Front

Which of the following statements is true?
Options:
If there is a budget surplus, the federal debt will increase.
If there is a budget deficit, the federal debt will decrease.
If there is a balanced budget, the federal debt will decrease.
If there is a federal deficit, the federal debt will increase.

Back

If there is a federal deficit, the federal debt will increase.

Front

Bert and Ernie are discussing their taxes. Bert says that he pays 30 % on all of his income but Ernie says that he pays different percentages on different portions of his income. Who is correct?

Back

Ernie