Fiscal Policy: Taxes Answers

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Which best describes how expansionary policies can facilitate economic growth?

They prompt decreased demand.

They inspire consumer confidence.

They increase disposable income.

They help reduce consumer debt.

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Which of these is most likely the US government’s aim in taxing imported goods?

to protect domestic businesses

to decrease international trade

to end reliance on foreign goods

to make US markets less desirable

Governments collect taxes to ensure that

there is sufficient money to fund private businesses.

citizens contribute to meeting society's needs.

politicians get paid in a timely manner.

a government program exists for every need that arises.

How is an excise tax different from a sales tax?

An excise tax is not deductible.

An excise tax applies to specific products.

An excise tax applies only to imported goods.

An excise tax is an indirect tax.

Which statements best describe sales tax? Check all that apply.

Sales tax does not affect low-income groups.

Sales tax is an indirect tax levied on goods and certain services.

Sales tax is a type of regressive taxation.

Sales tax is a direct tax paid by consumers to the government.

Sales tax affects high-income groups.

What gives the US government the power to collect taxes?

the Constitution

laws passed by Congress

an executive order

common law

Property taxes are usually determined based on

the property owner's income.

the amount of money invested in the property.

the earnings generated by the property.

the value of the property.

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