Government and Taxation

The Government Taxes, Borrows and Spends to

• Influence economic activity

• buy private property

This amendment is the INCOME TAX amendment

• 1st

• 5th

• 14th

• 10th

• 16th

When the government INCREASES taxes

• There is more money left for business and individuals

• There is less money left for business and individuals

When the government DECREASES taxes

• There is more money left for business and individuals

• There is less money left for business and individuals

INCREASED Govt Borrowing leads to

• More money left for business and individuals

• Less money left for business and individuals

DECREASED Govt Borrowing leads to

• More money left for business and individuals

• Less money left for business and individuals

INCREASED Govt SPENDING leads to

• More jobs and production but could lead to higher taxes

• Fewer jobs and production and could slow down the economy

DECREASED Govt SPENDING leads to

• More jobs and production but could lead to higher taxes

• Fewer jobs and production and could slow down the economy

THE FEDERAL RESERVE BANK DOES THE FOLLOWING- CHECK 3 ANSWERS!

• IT IS THE FEDERAL GOVT'S BANK

• IT SELLS PRIVATE HOME MORTGAGES

• IT MANAGES THE AMOUNT OF MONEY IN CIRCULATION

• IT INVESTS IN MAJOR CORPORATIONS

• IT SUPERVISES BANKS TO SEE THINGS RUN SMOOTHLY

Competition is a good thing for consumers because it keeps prices down and quality up!

• True

• False