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C11 Lesson 8 Exam SCORE 95 PERCENT

26/08/2020 Client: m166 Deadline: 10 Days

      


Question   1




5 / 5 points


Income taxes create a difference between the interest rate paid by companies and received by lenders. These taxes __________ saving, investment, and the growth rate of real GDP.


Question options:


  




do   not affect


 




lower


 




encourage,   but may not change


 




increase


 


Question 2




5 / 5 points


       


The U.S. fiscal year runs from __________.


Question options:


  




July   1 to June 30


 




August   1 to July 31


 




September   1 to August 31


 




October   1 to September 30


 


Question 3




5 / 5 points


       


Being a side effect of fiscal policy on the supply side, the provision of public goods and services __________ productivity and potential GDP.


Question options:


  




does   not affect


 




decreases


 




increases


 




can   hinder or stimulate


 


Question 4




5 / 5 points


       


What type of stabilizing fiscal policy is an increase in the health care budget for citizens without coverage?


Question options:


  




automatic   fiscal policy


 




discretionary   fiscal policy


 




contractionary   fiscal policy


 




long   run fiscal policy


 


Question 5




5 / 5 points


       


According to the government expenditure multiplier, when government expenditure increases, aggregate demand increases. Other things remaining the same, what happens to the real GDP?


Question options:


  




real   GDP remains stable


 




real   GDP increases


 




real   GDP decreases


 




real   GDP induces a decrease in consumption expenditure


 


Question 6




5 / 5 points


       


A government budget deficit __________ the real interest rate and “crowds out” some private investment, which slows real GDP growth.


Question options:


  




distorts


 




decreases


 




increases


 




does   not affect


 


Question 7




5 / 5 points


       


A variable that the Fed can directly control or closely target, and which influences the economy in desirable ways, is known as a(n. __________.


Question options:


  




fiscal   policy instrument


 




monetary   policy instrument


 




operational   instrument


 




economic   instrument


 


Question 8




5 / 5 points


       


The percentage deviation of real gross domestic product (GDP. from potential GDP is __________.


Question options:


  




marginal   GDP


 




input   gap


 




output   gap


 




deadweight   loss


 


Question 9




5 / 5 points


       


If real GDP is greater than potential GDP with inflation being a problem, the Fed will __________ the federal funds rate using a(n. __________.


Question options:


  




lower;   open market sale


 




raise;   closed market sale


 




raise;   open market sale


 




lower;   closed market sale


 


Question 10




5 / 5 points


       


What type of stabilizing fiscal policies arise because tax revenues and outlays fluctuate with the real GDP?


Question options:


  




automatic   fiscal policies


 




discretionary   fiscal policies


 




contractionary   fiscal policies


 




long   run fiscal policies


 


Question 11




5 / 5 points


       


Income taxes create a difference between the wage rate paid by companies and received by workers. These taxes __________ both employment and potential GDP.


Question options:


  




do   not affect


 




lower


 




encourage,   but may not change


 




increase


 


Question 12




5 / 5 points


       


What is the gap created by a tax between what a buyer pays and what a seller receives or between the before-tax and after-tax wage rates?


Question options:


  




net   taxes


 




tax   wedge


 




induced   tax


 




expenditure   tax


 


Question 13




0 / 5 points


       


A situation in which financial markets and institutions function normally to allocate capital resources and risk is __________.


Question options:


  




financial   stability


 




financial   instability


 




fiscal   stability


 




fiscal   instability


 


Question 14




5 / 5 points


       


A __________ gap leads to inflation and a __________ gap leads to unemployment.


Question options:


  




negative;   positive


 




positive;   negative


 




negative;   near zero


 




near   zero; positive


 


Question 15




5 / 5 points


       


If real GDP is below potential GDP, the government might decrease its expenditure on goods and service, decrease transfer payments, raise taxes, or do some combination of all three. This is called a(n. __________.


Question options:


  




automatic   fiscal policy


 




discretionary   fiscal policy


 




contractionary   fiscal policy


 




fiscal   stimulus


 


Question 16




5 / 5 points


       


What is the largest source of revenue for the federal government?


Question options:


  




personal   income taxes


 




social   security taxes


 




corporate   income taxes


 




indirect   taxes


 


Question 17




5 / 5 points


       


In the long run, an increase in the supply of bank loans is matched by a __________ in the price level and the quantity of real loans is __________.


Question options:


  




rise;   unchanged


 




rise;   increased


 




fall;   unchanged


 




fall;   decrease


 


Question 18




5 / 5 points


       


On the outlays side of the budget, how are Social Security benefits, Medicare and Medicaid benefits, unemployment benefits, and other cash benefits to individuals and businesses labeled?


Question options:


  




expenditure   on goods and services


 




transfer   payments


 




debt   interest


 




indirect   taxes


 


Question 19




5 / 5 points


       


Who first submits a budget proposal in February?


Question options:


  




Congress


 




the   House of Representative Budget Committee


 




the   Senate Budget Committee


 




the   President


 


Question 20




5 / 5 points


       


If tax revenues equal outlays on the federal budget, what does the government have?


Question options:


  




a   budget surplus


 




a   budget deficit


 




a   balanced budget


 




the   national debt

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