As of 2010 interest payments on the federal debt

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Modern Business Statistics with Microsoft Excel
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Chapter 1 / Exercise 13
Modern Business Statistics with Microsoft Excel
Anderson/Sweeney
Expert Verified
17.As of 2010, interest payments on the federal debt exceeded 10% of total expenditures.A) TrueB) FalseCorrect Answer(s):False
Points Earned:1.5/1.5
18.We argued that the tax revenue that the federal government collects is pro-cyclical, that is, when economic activity is growing so is tax revenue. An example of this is the new economywhen tax revenue increased along with the economic growth.
Points Earned:1.5/1.5
19.If aggregate expenditures exceed aggregate income then inventories will rise and firms will eventually lay off workers.
Points Earned:0.0/1.
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Modern Business Statistics with Microsoft Excel
The document you are viewing contains questions related to this textbook.
Chapter 1 / Exercise 13
Modern Business Statistics with Microsoft Excel
Anderson/Sweeney
Expert Verified
5
20.We argued that cutting the corporate income tax will have supply side effects in that cutting the corporate income tax can potentially increase the pace of technological change with the implication being the aggregate supply will shift to the right.
Points Earned:1.5/1.5
21.According to the Laffer curve, increases in tax rates always result in less tax revenue.A) TrueB) FalseCorrect Answer(s):False
Points Earned:1.5/1.5
22.One reason that tax revenue may fall when tax rates are increased is due to tax evasion, that is, the higher the tax rate, the higher the probability of the tax evasion and thus, lower tax revenue. The example I used was when Canada quadrupled the tax rate on cigarettes Canadian citizens sought out to buy illegally smuggled in US cigarettes to evade the tax on Canadian cigarettes.
Points Earned:1.5/1.5Correct True
23.The term 'voodoo economics' is a term used by the proponents of supply side economics trying to explain to its critics that lower tax rates will result in higher tax revenue.
Points Earned:0.0/1.5
24.Barro is considered to be a supply side economist which is consistent with his idea that we should eliminate the corporate income tax.
Points Earned:1.5/1.5
25.According to the table depicting the effective tax rate on capital for 2007, the only country that has a higher effective tax rate on capital is Greece.A) TrueB) FalseCorrect Answer(s):False
Points Earned:1.5/1.5
26.
According to our discussion of supply side economics, there are positive aggregate demand side effects and positive supply side effects, similar to what happened during the new economy.
Points Earned:1.5/1.5

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