In which type of discretionary fiscal policy does the multiplier play a role?

A. neither government spending changes nor tax changes

B. both government spending changes and tax changes

C. tax changes only

D.government spending changes only

The problem of time inconsistency applies to fiscal policy as well as to monetary policy. Suppose the government announced a reduction in taxes on income from capital investments, like new factories.

Given your answer to part (b), would investors believe the government's announcement? What can the government do to increase the credibility of announced policy changes?

(part b) After investors have responded to the announced tax reduction, does the government have an incentive to renege on its policy?

Consider each of the following tax policies. Decide for each whether the primary public policy goal is most likely raising revenue or changing behavior (with or without a market failure).

b. Cigarette tax.

Today, there are about three times as many state chartered commercial banks as there are nationally chartered commercial banks. How does the current U.S. economy avoid the kinds of problems caused by state banks in the 19th century?

Suppose the market for gourmet chocolate is in longrun equilibrium and an economic downturn has reduced consumer discretionary incomes. Assume chocolate is a normal good and the chocolate producers have identical cost structures.

a. What will happen to demand-shift right, shift left, no shift?

How did educational generally affect the use of electronic payments?

a. Write a definition for the term tax incentives. b. Which government policy might be better for the economy in the long term, a policy that pays unemployment benefits to people who are not working or a policy that trains people for jobs and helps them find work? Explain your reasoning.

Which type of electronic banking increased the most among all households between 1995 and 2001?

A toll is a tax on those citizens who use toll roads. This policy can be viewed as an application of a. the benefits principle. b. horizontal equity. c. vertical equity. d. tax progressivity

Which type of stored-value card is most like a debit card?

How did the automated teller machine change the nature of banking?

Explain whether borrowing constraints increase or decrease the potency of fiscal policy to influence aggregate demand in each of the following cases: a. A temporary tax cut, b. An announced future tax cut.

How is the Federal Reserve System different from the system of national banks created in the 1860s?

Which of these fiscal policy actions will increase real GDP in the short run?
A. An increase in government expenditures
B. An increase in the individual income tax
C. An increase in the Social Security tax.