Unit IV Review - Financing Government

This is the largest source of Federal Revenue.

• Sales Tax

• Estate Tax

• Payroll Tax

• Income Tax

Which policy would result in economic expansion?

• Raise Interest Rates

• Lower Interest Rates

• Increase Taxes

• Decrease Government Spending

These are taxes on the purchases of goods or services.

• Estate Tax

• Income Tax

• Payroll Tax

• Sales Tax

Taxes on goods that are imported to the US from another country.

• Tariff

• Payroll Tax

• Income Tax

• Estate Tax

Which of the following would result in a contracting economy.

• Increased government spending

• Buy back government bonds through Open Market Operations

• Lower Taxes

• Increase the discount rate on Federal Reserve loans.

If the government spends more money than it collects in revenues, which of the following will occur.

• A balanced budget

• A budget deficit (increase in debt)

• A budget surplus (extra revenue)

• Discount Rate

All of the following are economic goals of governments, EXCEPT...

• Full employment

• Economic Growth

• Inflation

• Price Stability

The Federal Reserve Bank is responsible for...

• Collecting Taxes

• Managing the National Debt

• Regulating Health Care

• Regulating Monetary Policy

All of the following would slow the economy down, EXCEPT...

• Reducing Government Spending

• Decrease Taxes

• Drive up inflation

• Sell Government Bonds through the Open Market Operations

All of the following are regressive taxes, Except...

• Sales Tax

• Estate Tax

• Capital Gains Tax

• Income Tax