Fiscal Policy: Taxes

Question 1

proportionallyprogressivelyregressively

Revolt · Accepted Answer

proportionally

Question 2

High government expenditures can lead to a bigger

Revolt · Accepted Answer

deficit.

Question 3

Which best explains how contractionary policies can hamper economic growth?

Revolt · Accepted Answer

They reduce disposable income.

Question 4

Which best describes how expansionary policies can facilitate economic growth?

Revolt · Accepted Answer

They increase disposable income.

Question 5

How is an excise tax different from a sales tax?

Revolt · Accepted Answer

An excise tax applies to specific products.

Question 6

If expansionary taxation policies encourage growth, are they always appropriate to implement?

Revolt · Accepted Answer

No, government services could encourage growth but other practices could be more effective based on the economic situation.

Question 7

How are progressive taxes and regressive taxes similar?

Revolt · Accepted Answer

Both generate revenue for public services.

Question 8

What gives the US government the power to collect taxes?

Revolt · Accepted Answer

the Constitution

Question 9

sales taxtariffexcise tax

Revolt · Accepted Answer

tariff

Question 10

Under a contractionary taxation policy, the government can reduce the deficit by

Revolt · Accepted Answer

increasing taxes.

Fiscal Policy: Taxes Answers