Econ Chapter 15
Monetary policy is
The use of the money supply to influence the economy
A progressive tax system is one in which:
income tac rates increase as earned income increases
A marginal tax rate is
the tax rate paid on a worker's next dollar of income
Fiscal policy is
the use of government spending and taxes to influence the economy
Congress and the president would conduct expansionary fiscal policy in order to:
try to stimulate the economy toward expansion
If the economy beings to fall into a recession, one would expect Congress and the President to conduct what type of policy?
Expansionary fiscal policy
The most relevant tax rate for making decision about earning additional income it the
marginal tax rate
If policy makers are concerned about the unequal distribution of income within society, then they should prefer a _______ tax system.
progressive
The United states has a ______ income tax system.
progressive