Econ Chapter 14-16 review

An example of a contractionary monetary policy is increasing the money supply through lowering taxes.

It is possible for a higher income earner to pay more in taxes than a lower income earner under a regressive tax system

John Maynard Keynes thought that economy can always heal itself.

A decrease in gov. spending or an increase in taxes

Types of Taxing: everyone is taxed at the same rate

Property taxes account for most of the federal revenues.

The office of Management and Budget helps the President prepare the budget

A reduction in taxes always leads to a reduction in revenues

This shows the relationship between tax rates and tax revenues

The situation in which increases in the gov. spending lead to reduction in private spending

Government spending that is required

This is a tax on retired and disabled individuals

This issue of crowding out does not arise in Monetary Policies.

An increase in gov. spending or a reductionist taxes

A decrease in the money supply is considered to be

All of the following are major federal taxes except:

An example of proportional taxes: I got a pay raise and now my income over $15,000 is taxed 2% higher.

since the economy fluctuates, the government always knows exactly how much they will bring in in tax revenues.

Types of Taxing: the more money you make, the more you are taxed

When the Fed is erratic with monetary policy it is called

Taxes can be used to prevent negative externalities.

the federal government can borrow money from itself to cover revenue shortfalls

The part of income that is left over after taxes are paid

All of the following are items the government spends its revenues on, except:

The occurrence of inflation and high unemployment at the same time

Changes the gov. makes in spending or taxation to achieve particular economic goals

An increase in the money supply is considered to be

The federal government often runs on a budget surplus.

All of the following would pay taxes except:

Changes the Fed makes in the money supply

Most of our country's debt is owed to China.

As a good goes through different levels of production, taxes are added up

Types of Taxing: as you make more money, your income is taxed at a lower rate

The President is the only one who decides what we spend our tax dollars on.