Exam 4 Econ 2210
In your current job, you earn $55,000. You take the standard deduction of $12,200. You have an offer of a new job working for a different employer. Your salary would go up by $5,000. How much extra will you owe in federal income taxes if you take the new job?
$1,100
The standard deduction for a single person is $12,200. Based on this table, if your total income is $47,000, what is the amount of tax you will pay on your taxable income?
$3,982
The slope of the consumption function is the:
. marginal propensity to consume.
How is monetary policy different from fiscal policy?
Monetary policy adjusts interest rates, whereas fiscal policy adjusts government spending and taxes.
An excise tax is a tax on:
a specific product.
The liquidity of an asset is defined as the:
ability to quickly and easily convert the asset to cash, with little or no loss in value.
Credit constraints limit the:
amount of money that people can borrow.
Future value is the:
amount that your money will grow into by a future date as a result of earning interest.
A mutual fund is a fund that:
buys a portfolio of stocks and bonds on your behalf.
Depreciation refers to the:
decline in capital due to wear and tear, obsolescence, accidental damage, and aging.
The loanable funds market is the market for:
funds used to buy, rent, or build capital.
Discretionary spending is spending that:
is appropriated by Congress annually.
Hand-to-mouth consumers:
live paycheck to paycheck.
Forward guidance occurs when the Federal Reserve:
provides information about the future course of monetary policy in order to influence expectations about future interest rates.
Investment refers to:
spending on physical capital.
The three major pillars of the financial sector are the:
stock market, the bond market, and the banks.
Mandatory spending is spending that:
supports programs that do not get determined annually but instead are set in law.
What is the Federal Reserve's mandate?
to ensure maximum employment while maintaining stable prices
