Question 3 (1 point)
[Question 3 Unsaved]
If the spending multiplier is 8, the tax multiplier is
Question 3 options:
A) 0.
B) -1.
C) -7.
D) -8.
Question 4 (1 point)
[Question 4 Unsaved]
Suppose the marginal propensity to consume (MPC) is 0.90. If the government increases both its spending and taxes by $50 million, then aggregate demand will
Question 4 options:
A) increase by $50 million.
B) increase by $45 million.
C) remain unchanged.
D) increase by $4.5 million.
Question 5 (1 point)
[Question 5 Unsaved]
Which of the following types of economic policy was advocated by the Reagan administration?
Question 5 options:
A) Keynesian fiscal policy.
B) Supply-side fiscal policy.
C) Balanced-budget fiscal policy.
D) Automatic stabilizers.
Question 6 (1 point)
[Question 6 Unsaved]
The Laffer curve is a graph of the relationship between tax rates and
Question 6 options:
A) government spending.
B) inflation.
C) real GDP.
D) total tax revenues.
Question 7 (1 point)
[Question 7 Unsaved]
Supply-side fiscal policies primarily focus on
Question 7 options:
A) improving incentives to work, save, and invest.
B) adjusting interest rates and the money supply.
C) expanding overseas markets.
D) developing the nation's infrastructure.
Question 3 (1 point)
[Question 3 Unsaved]
If the spending multiplier is 8, the tax multiplier is
Question 3 options:
A) 0.
B) -1.
C) -7.
D) -8.
Question 4 (1 point)
[Question 4 Unsaved]
Suppose the marginal propensity to consume (MPC) is 0.90. If the government increases both its spending and taxes by $50 million, then aggregate demand will
Question 4 options:
A) increase by $50 million.
B) increase by $45 million.
C) remain unchanged.
D) increase by $4.5 million.
Question 5 (1 point)
[Question 5 Unsaved]
Which of the following types of economic policy was advocated by the Reagan administration?
Question 5 options:
A) Keynesian fiscal policy.
B) Supply-side fiscal policy.
C) Balanced-budget fiscal policy.
D) Automatic stabilizers.
Question 6 (1 point)
[Question 6 Unsaved]
The Laffer curve is a graph of the relationship between tax rates and
Question 6 options:
A) government spending.
B) inflation.
C) real GDP.
D) total tax revenues.
Question 7 (1 point)
[Question 7 Unsaved]
Supply-side fiscal policies primarily focus on
Question 7 options:
A) improving incentives to work, save, and invest.
B) adjusting interest rates and the money supply.
C) expanding overseas markets.
D) developing the nation's infrastructure.