FEE Fiscal Policy

Who conducts fiscal policy?

• Federal Reserve

• Congress and the President

• Judicial

• Central Bank

Decreasing taxes or increasing government spending

• Expansionary fiscal policy

• Contractionary fiscal policy

• Expansionary monetary policy

• Contractionary monetary policy

If Real GDP is growing strong with low unemployment, what fiscal policy action would help prevent inflation?

• Lower taxes

• Higher taxes

• Increased government spending

If an individual has a taxable income of $55,000, what would their tax rate be on a $5,000 bonus they are awarded?

• 0%

• 10%

• 12%

• 22%

If an individual has a taxable income of $50,000, what would be their average tax rate?

• 10%

• 13.5%

• 22%

• 24%

If someone earned $9,950 of taxable income, what would the amount of tax they would have to pay the federal government?

• $0

• $995

• $1,000

• $1,500

What type of taxation is this table an example of?

• Progressive

• Regressive

• Proportional

What type of taxation causes high-income families pay a disproportionate share of the tax burden?

• Progressive

• Regressive

• Proportional

Massachusetts has a 5% state income tax on all taxable income. What type of taxation is this an example of?

• Progressive

• Regressive

• Proportional

What type of tax is also known as a flat tax?

• Progressive

• Regressive

• Proportional