Reference no: EM131086124
1) Tight Money Policy is implemented by the ------------------------
a) The Federal Government when there is inflation
b) Congress when there is a budget surplus
c) The Fed when there is budget deficit
d) None of the Above
2) In the Base Year
a) Velocity and Price level are at 100
b) Nominal GDP and Real GDP are both at 100
c) The Fed implements fiscal policies
d) None of the Above
3) The RRR is 2.5% and the Discount Rate is 4%; then
a) The Federal government must raise taxes by 1.5%
b) The fed must lower taxes by 1.50%
c) The Fiscal Multiplier is 40
d) The Money Multiplier is 40
4) Jack earns 60K and pays 3K in taxes; Peter earns 100K and pays 5K in taxes; then, the tax system must be:
a) Regressive
b) Proportional
c) Progressive
d) None of the Above
5) Professors are not obligated to pay taxes on markers provided to them by the college based on the following principle:
a) Ability to pay
b) Ability to Benefit
c) Difficulty to Administrate
d) All of the above
6) In inflationary times,
a) The Fed will raise taxes
b) The Government implements tight money policies
c) The Fed Cut taxes
d) None of the Above
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