The role of the progressive tax system as an autonomous fiscal stabilizer requires that the budget
a. should require actual deficits be equal to zero on average.
b. should go into a surplus at appropriate points in the business cycle.
c. cannot have a structural deficit component.
d. Both a and b
e. None of the above
Question 2
Assume there are 75 transactions a year in an economy with a money supply of 300 . If the average value of each transaction is 20, then the velocity of money is
a. 1/2.
b. 1
c. .2
d. 20.
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