Readers ask: Which best explains how contractionary policies can hamper economic growth?

Which best explains how contractionary policies can hamper economic?

Answer Expert Verified The policy involves decreasing the money supply through increase in the discount rate or sale of government bonds or increase in the reserve ratio. Contractionary policy increases the cost of borrowing. This decreases GDP and dampens inflation, but it also leads to reduced disposable income.

Which best describes how expansionary policies can facilitate economic growth?

Which best describes how expansionary policies can facilitate economic growth ? They increase disposable income.

Which programs or projects most likely funded by taxes paid by the citizens of the United States select three options?

The projects and programs funded by taxes of the United States includes social security, national security, medicare, social services, etc.

How are progressive and regressive taxes similar?

How are progressive taxes and regressive taxes similar ? a. Both charge high-income individuals more. Both are types of indirect taxes .

Which is an example of a sales tax?

Sales tax is an additional amount of money you pay based on a percentage of the selling price of goods and services that are purchased. For example , if you purchase a new television for $400 and live in an area where the sales tax is 7%, you would pay $28 in sales tax . Your total bill would be $428.

Which of the best describes income tax?

Answer Expert Verified. The correct answer is ” income tax is a direct tax “. A direct tax is imposed on a person, instution or property, rather than on a transaction, that is the case of indirect taxes . Direct taxes are, for example, income tax or property tax .

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What best describes a regressive tax?

Explanation: A regressive tax is commonly a tax that is applied equally, which means it affects lower-income individuals more, with regressive tax the rate of tax decrease as the income rise.

Why are sales taxes considered regressive quizlet?

Why are sales and excise taxes considered to be regressive ? Considered regressive because low-income families spend larger portions of their income on goods with sales and excise tax than families with high-income. Reduces need for many workers in the IRS and tax prepares.

What is the main goal in creating the federal budget?

The central purpose of the budget process established by the 1974 act is to coordinate the various revenue and spending decisions which are made in separate revenue, appropriations, and other budgetary measures.

In which period did the federal budget show the greatest deficit?

The largest prior deficit , $1.4 trillion, occurred in FY 2009. 4 5 Spending increased to combat the 2008 financial crisis. At the same time , tax receipts dropped due to the recession, decreasing revenue. Three other programs—Social Security, Medicare, and Medicaid—also add a lot to the deficit .

Which of these is most likely the US government’s aim in taxing imported goods to protect domestic businesses?

The correct answer is to protect domestic businesses . When the US government puts a tax on an imported good (aka a tariff) they are trying to protect American businesses .

Is a tax issued by the federal government on imported goods?

A tariff is a tax issued by the federal government on imported goods . A tariff is a tax imposed on imported goods and services, often known as a duty or a trade barrier. A tariff is intended limit or reduce the amount of certain good imported into the country.

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What are some examples of regressive taxes?

Since they are flat taxes , they take a higher percentage of income on the poor than on high-income earners. Taxes on most consumer goods, sales, gas, and Social Security payroll are examples of regressive taxes . Pigouvian and sin taxes are specific types of regressive taxes .

Is regressive tax fair?

Regressive taxes may seem fair because they are imposed on everyone regardless of income, but they hurt low-income earners more than others. That’s because they spend a larger portion of their income on regressive taxes than people who earn more.

Why are regressive taxes considered unfair?

A regressive tax affects people with low incomes more severely than people with high incomes because it is applied uniformly to all situations, regardless of the taxpayer. While it may be fair in some instances to tax everyone at the same rate, it is seen as unjust in other cases.

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