Government and The Economy - Test
What was Indiana's total government expenditures in fiscal year 2018-2019?
$34.11 billion
Determine who pays individual income taxes, corporate income taxes, and payroll taxes.
Companies pay corporate income and payroll taxes, and employees pay individual income and payroll taxes. Those who are self-employed may have to pay individual income, corporate income, and payroll taxes.
How do the instances when expansionary fiscal policy should be used compare with those for contractionary fiscal policy?
Expansionary fiscal policy should be used during recessions to help build the economy and contractionary fiscal policy should be used when there is high inflation.
Arrange the following revenues in the federal government, from greatest to least. Drag each item to put them in the correct order.
Individual income tax. Social security and Medicare taxes. Corporate income taxes. Excise taxes. Miscellaneous revenue. Customs duties.
Suppose expenses for Medicare and Medicaid are rising rapidly. Which strategy could the federal government use to solve this situation?
Make cuts to defense and education spending, and then increase income and payroll tax rates to reduce the effect of increasing expenses in the federal government.
Match the definition with the tax. Drag each item to the correct location.
Tax paid on person earnings from wages, interest, and invetments = individual income tax a tax by state and local governments on the sale of goods and services at the point of sale = sales tax a tax paid on the wages and salaries of employees = payroll tax a tax levied on the profits earned from buisness activities = corporate income tax A tax paid to local governments bbby landowners, homeowners, and buisnesses = property tax
Compare the functions of the Federal Reserve district banks with those for the Board of Governors.
The Board of Governors set the discount rate and reserve requirements on banks while the Federal Reserve district banks overlook the banking industry and implement the policies from the Board of Governors.
Which statement best describes the roles of the Federal Reserve?
The Federal Reserve directs monetary policy, sets interest rates, and provides banking services for commercial banks.
The economy has been sluggish in recent months with slow economic growth. Explain the policies that the Federal Reserve could use to improve the economy.
The Federal Reserve purchases treasuries and securities and also issues new repurchase agreements. The increase in the money supply and decrease in interest rates result in more lending and risk.
Which statement best interprets the trend in the national debt since 2004?
The national debt has been steadily increasing each year since 2004.
Match the definition with the term provided. Drag each term to the correct location.
The short-term purchase of securities with a dealer for the Federal Reserve to resell the securities at a later date. - reserve requirements The interest rate a bank charges to its best customers. - prime rate The funds a bank must hold against the deposit liabilities. - repurchase agreements The interest rate the Federal Reserve charges to banks for loans issued. - discount rate The interest rate banks charge each other for overnight lending. - federal funds rate The purchase and sale of treasury and mortgage-backed securities with dealers. - open market operations
Which situations result in an increase in the national debt? Select the two correct answers.
an increase in intragovernmental debt a decrease in the federal budget's deficit
What effects does the Federal Reserve have on the economy? Select the three correct answers.
individual income tax rates, employment, & economic growth
What was the United States federal budget deficit in 2019?
slightly less than $1 trillion
Which items are part of mandatory spending in the federal government? Select the three correct answers.
state and local governments, medicare & medicaid, & social security
