Author Question: Discretionary fiscal policy to stimulate the economy includes ________. A. lowering the tax rate ... (Read 97 times)

cnetterville

  • Hero Member
  • *****
  • Posts: 547
Discretionary fiscal policy to stimulate the economy includes ________.
 
  A. lowering the tax rate paid by households with middle incomes
  B. raising the tax on gasoline
  C. the fall in tax revenue as the economy goes into recession
  D. the rise in tax revenue collected from businesses as their profits in-crease

Question 2

Which of the following would you expect to decrease both interest rates and exchange rates? (Assume exchange rates are stated in terms of foreign currency per domestic currency.)
 
  A) contractionary monetary policy
  B) contractionary fiscal policy
  C) expansionary monetary policy
  D) Both B and C will decrease both interest rates and exchange rates.



SVictor

  • Sr. Member
  • ****
  • Posts: 365
Answer to Question 1

A Answer A is discretionary fiscal policy because it requires an act of Congress. It is an expansionary policy because it is de-signed to increase consumption expenditure and hence ag-gregate demand.

Answer to Question 2

D



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

Did you know?

Famous people who died from poisoning or drug overdose include, Adolf Hitler, Socrates, Juan Ponce de Leon, Marilyn Monroe, Judy Garland, and John Belushi.

Did you know?

Pubic lice (crabs) are usually spread through sexual contact. You cannot catch them by using a public toilet.

Did you know?

The people with the highest levels of LDL are Mexican American males and non-Hispanic black females.

Did you know?

Though “Krazy Glue” or “Super Glue” has the ability to seal small wounds, it is not recommended for this purpose since it contains many substances that should not enter the body through the skin, and may be harmful.

For a complete list of videos, visit our video library