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