Reference no: EM132512267
Over the last 50 years, has the U.S. government more often run budget deficits or budget surpluses?
More often run deficits
More often run surpluses
Equally likely to run either
Which is a larger part of the Federal budget, discretionary spending or unavoidable spending?
More discretionary spending
More unavoidable spending
The Federal budget includes the same amount of both
What has happened to the cost of converting near-monies to medium of exchange money over the past 100 years?
The cost has risen
The cost has fallen
The cost has not changed
Which of the following is an expansionary monetary policy action?
Raising the discount rate
Raising the target federal funds rate
Raising the real interest rate
Raising the amount of excess reserves
Raising the required reserve ratio
What effect will the purchase of government securities by the Fed have on a bank's total assets?
The bank's total assets increase
The bank's total assets decrease
The bank's total assets do not change
If the Laffer Curve hits its maximum at 70%, and the current marginal tax rate is 50%, what will happen to total tax receipts if marginal tax rates are cut to 40%?
Tax receipts will fall by 10%
Tax receipts will rise by 10%
Tax receipts will fall by more than 10%
Tax receipts will rise by more than 10%
Tax receipts will fall by less than 10%
Tax receipts will rise by less than 10%
John Watson has an opportunity to work 10 hours overtime and earn $500. The value to him of his lost leisure time if he works the overtime is $300. If his marginal tax rate is 20%, will he be better off if he works the overtime?
Yes
No
What effect will an outward shift in aggregate supply have on the price level?
Price level will fall
Price level will rise
Price level will not change