Question

When the government increases taxes in order to pay off more of its debt then 1....

When the government increases taxes in order to pay off more of its debt then 1. Inflation is likely to _______ and 2. Employment are likely to _______?

a. 1. Rise; 2. Rise

b. 1. Rise; 2. Fall

c. 1. Fall; 2. Rise

d. 1. Fall; 2. Fall

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1) Large increases in taxes on the wealthy would allow us to easily pay down the...
1) Large increases in taxes on the wealthy would allow us to easily pay down the public debt. TRUE or FALSE? 2) Interest payments are expected to rise over the next 30 years because: O A. interest rates are expected to rise by more than the deficit is expected to fall O B. interest rates are expected to rise O C. the deficit is expected to rise O D. interest rates are expected to rise and the deficit is expected...
1.In the IS–LM model in a closed economy, an increase in government spending increases the interest...
1.In the IS–LM model in a closed economy, an increase in government spending increases the interest rate and crowds out: Select one: a. the money supply. b. investment. c. taxes. d. prices. 2.In the case of cost-push inflation, other things being equal: Select one: a. the unemployment rate rises but the inflation rate falls. b. both the inflation rate and the unemployment rate fall. c. both the inflation rate and the unemployment rate rise at the same time. d. the...
1. A cut in government spending, a decrease in income abroad, an increase in taxes, or...
1. A cut in government spending, a decrease in income abroad, an increase in taxes, or an expectation that future consumer income will fall will all cause aggregate: A) demand to shift rightward. B)demand to shift leftward. C)supply to shift rightward. D)supply to shift leftward. E) supply and aggregate demand to both shift equally inward. 2. A decrease in aggregate supply can result in: A) Unemployment B) demand- pull inflation C) prosperity D) cost- push inflation E) a recession 3.A...
1; the government increases its spending by $1000 billion. if the marginal propensity to save is...
1; the government increases its spending by $1000 billion. if the marginal propensity to save is 0.2, what happens to the following: do they rise or fall and  by what amount a public saving b private saving c national saving d investment e interest rate  
1. Which of the following would be considered a component of government expenditures? Group of answer...
1. Which of the following would be considered a component of government expenditures? Group of answer choices a. More than one of these options is correct b. Social security payments c. Interest paid on outstanding bonds d. Welfare payments e. Police salaries 2. Which of the following statements is true? Group of answer choices a. The government deficit tends to rise and fall with the business cycle b. When the government runs a surplus it means that its outlays are...
Crowding out occurs when debt-financed government spending increases A) inflation. B) exchange rates. C) expectations. D)...
Crowding out occurs when debt-financed government spending increases A) inflation. B) exchange rates. C) expectations. D) mindfulness. E) interest rates.
Fiscal Policy When inflation rates drove up borrowing costs in the 1980s, the federal debt _____,...
Fiscal Policy When inflation rates drove up borrowing costs in the 1980s, the federal debt _____, because increased borrowing costs _______ the size of the budget deficit. a. rose; increased b. fell; increased c. rose; left unchanged d. fell; left unchanged Examples of automatic stabilizers within the economy include all of the following EXCEPT a. Social Security payments to retirees b. unemployment benefits for laid-off workers c. food stamps for low-income families d. progressive income taxes During expansions, automatic stabilizers...
The government decides to cut income taxes to combat a potential recession. If the economy was...
The government decides to cut income taxes to combat a potential recession. If the economy was initially in long-run equilibrium, this reduction in taxes will lead the price level to____ in the short run and ___ in the long run. a.) fall; fall further b.) fall; rise back towards its initial position c.) rise; rise further d.) rise; fall back towards its initial position. Please explain your reasoning.
1. The government engages in expansionary fiscal policy in order to close a recessionary output gap....
1. The government engages in expansionary fiscal policy in order to close a recessionary output gap. In the long-run we would expect to witness A. Consumption, Investment and Net-exports fall by the amount government expenditure increased by. B. Price levels to fall. C. Taxes to fall in the future. D. Consumption, Investment and Net-exports rise by the amount government expenditure decreased by.
1. The aggregate demand curve shifts to the right when the Fed: a. increases its target...
1. The aggregate demand curve shifts to the right when the Fed: a. increases its target inflation rate, reflected by a downward shift in the Fed’s policy reaction function. b. decreases its target inflation rate, reflected by an upward shift in the Fed’s policy reaction function. c. increases real interest rates in response to inflation, but does not change its target inflation rate or the Fed’s policy reaction function. d. decreases real interest rates in response to inflation, but does...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT