I need help with these questions Question 1 Which of the following represent exp

Question

I need help with these questions

Question 1
Which of the following represent expansionary fiscal policy?
Question 1 answers
an increase in marginal individual income tax rates
an increase in average individual income tax rates
a cut in corporate income tax rates
a reduction in government spending

Question 2 text Question 2
Deficit financing
Question 2 answers
is when the government adjusts taxes to raise money to pay for government projects.
is the mechanism behind the Laffer curve.
is when discretionary fiscal policy leads to spending more than is collected in taxes.
is how the automatic stabilizers work.

Question 3 text
The biggest component of the U.S. federal budget is
Question 3 answers
salaries of government employees.
military spending.
entitlements.
interest expenses.

Question 4 text
As a possible solution to eliminate the government budget deficit, increasing taxes on the rich only would
Question 4 answers
lead to an increase in real GDP.
lead to a significant increase in tax revenues.
lead to a greater number of entitlements.
not lead to a significant increase in tax revenues.

Question 5 text
When you set aside the money you have today in order to purchase goods and services later on, you are using money as a
Question 5 answers
standard of deferred payment.
medium of exchange.
unit of accounting.

Question 6 text
Which of the following statements is not true about money?
Question 6 answers
Anything that serves as a medium of exchange, as a unit of accounting, as a store of value, and as a standard of deferred payment can be called money.
Money is a standard of deferred payment.
Money can only be coins and paper.
Money is any medium that is universally accepted by sellers and creditors.

Question 7 text
The U.S. fiduciary monetary system
Question 7 answers
is one where money is not convertible to a fixed quantity of gold.
puts capital controls in place.
controls the private banking system.
is the one agency responsible for providing coins and paper currency.

Question 8 text
The central bank for the United States is
Question 8 answers
the Federal Reserve System.
the Bank of America.
the Andrew Jackson Bank of Washington, D.C.
the First National Bank of New York.

Question 9 text
By serving as the lender of last resort,
Question 9 answers
the Fed provides check clearing services.
the Fed aids in the sale of government securities.
the Fed supervises depository institutions.
the Fed can prevent bank failures.

Question 10 text
The discount rate is the
Question 10 answers
interest rate the Fed charges to the largest and most secure manufacturing concerns in the country.
interest rate on short-term U.S. government securities.
interest rate banks charge their best customers.
interest rate the Fed charges on loans made to depository institutions.

Question 11
Which of the following is a NOT a tool the Fed uses to change the money supply?
Question 11 answers
The reserve ratio
The discount rate
Open market operations
The tax rate

Question 12
To expand the money supply, the Fed should
Question 12 answers

sell U.S. government securities.
cut taxes.
raise the required reserve ration.
buy U.S. government securities.

Explanation / Answer

Question 1 Which of the following represent expansionary fiscal policy? Question 1 answers a cut in corporate income tax rates Expansionary policy happens by way of increasing government spending or by tax reduction. an increase in marginal individual income tax rates an increase in average individual income tax rates a reduction in government spending Question 2 text Question 2 Deficit financing Question 2 answers is when discretionary fiscal policy leads to spending more than is collected in taxes. is when the government adjusts taxes to raise money to pay for government projects. is the mechanism behind the Laffer curve. is when discretionary fiscal policy leads to spending more than is collected in taxes. is how the automatic stabilizers work. Question 3 text The biggest component of the U.S. federal budget is Question 3 answers military spending. about 20% of spending... salaries of government employees. military spending. entitlements. interest expenses. Question 4 text As a possible solution to eliminate the government budget deficit, increasing taxes on the rich only would not lead to a significant increase in tax revenues. for increasing tax revenue, we should increase the tax blanket, i.e making more people to come under the tax paying. This is done by economic growth. Question 4 answers lead to an increase in real GDP. lead to a significant increase in tax revenues. lead to a greater number of entitlements. not lead to a significant increase in tax revenues. Question 5 text When you set aside the money you have today in order to purchase goods and services later on, you are using money as a Question 5 answers standard of deferred payment. Question 6 text Which of the following statements is not true about money? Question 6 answers Money can only be coins and paper. Coins and paper are fiat ,money, there are also other medium of exchange like checks, demand drafts, any negotiable instrument. Anything that serves as a medium of exchange, as a unit of accounting, as a store of value, and as a standard of deferred payment can be called money. Money is a standard of deferred payment. Money is any medium that is universally accepted by sellers and creditors. Question 7 text The U.S. fiduciary monetary system is one where money is not convertible to a fixed quantity of gold. Previously currency is backed by precious metals, but today it is printed based on the trust of the people. Fiduciary monetary system is not dependent on the gold reserves.. Question 7 answers is one where money is not convertible to a fixed quantity of gold. puts capital controls in place. controls the private banking system. is the one agency responsible for providing coins and paper currency. Question 8 text The central bank for the United States is Question 8 answers the Federal Reserve System. it is the bankers bank, and through it there will be monetary policy implementation.the Bank of America. the Andrew Jackson Bank of Washington, D.C. the First National Bank of New York. Question 9 text By serving as the lender of last resort, the Fed can prevent bank failures. It aids the banks which are in trouble and prevents their failure. Question 9 answers the Fed provides check clearing services. the Fed aids in the sale of government securities. the Fed supervises depository institutions. Question 10 text The discount rate is the interest rate the Fed charges on loans made to depository institutions. As a lender of last resort, depositary institutions( commercial banks ) will borrow in times of need, and the intrest rate charged by the Fed is called discount rate.. Question 10 answers interest rate the Fed charges to the largest and most secure manufacturing concerns in the country. interest rate on short-term U.S. government securities. interest rate banks charge their best customers. Question 11 Which of the following is a NOT a tool the Fed uses to change the money supply? Question 11 answers The tax rate is a fiscal monetary measure. The reserve ratio The discount rate Open market operations Question 12 To expand the money supply, the Fed should Question 12 answers buy U.S. government securities. by this action there will be an increase in money supply in the economy... sell U.S. government securities. cut taxes. raise the required reserve ration.

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