10 Sep Question 1 5 / 5 points

Question   1

 

5 / 5 points

Income taxes create a difference between the interest rate paid by companies and received by lenders. These taxes __________ saving, investment, and the growth rate of real GDP.

Question options:

  

 

do   not affect

 

 

lower

 

 

encourage,   but may not change

 

 

increase

 

Question 2

 

5 / 5 points

       

The U.S. fiscal year runs from __________.

Question options:

  

 

July   1 to June 30

 

 

August   1 to July 31

 

 

September   1 to August 31

 

 

October   1 to September 30

 

Question 3

 

5 / 5 points

       

Being a side effect of fiscal policy on the supply side, the provision of public goods and services __________ productivity and potential GDP.

Question options:

  

 

does   not affect

 

 

decreases

 

 

increases

 

 

can   hinder or stimulate

 

Question 4

 

5 / 5 points

       

What type of stabilizing fiscal policy is an increase in the health care budget for citizens without coverage?

Question options:

  

 

automatic   fiscal policy

 

 

discretionary   fiscal policy

 

 

contractionary   fiscal policy

 

 

long   run fiscal policy

 

Question 5

 

5 / 5 points

       

According to the government expenditure multiplier, when government expenditure increases, aggregate demand increases. Other things remaining the same, what happens to the real GDP?

Question options:

  

 

real   GDP remains stable

 

 

real   GDP increases

 

 

real   GDP decreases

 

 

real   GDP induces a decrease in consumption expenditure

 

Question 6

 

5 / 5 points

       

A government budget deficit __________ the real interest rate a