If taxes and government expenses did not vary with income, then income wouldMultiple Choicebe more stable.not change.be less stable.be closer to potential income.

Single choice10)People, corporations and charitable institutions mainly save and invest to:Smooth consumption over a long periodSpeculate on the direction of the financial marketsAvoid taxes in the current tax year

If you had to choose between changing taxes OR changing government spending to achieve a balanced budget. What would you choose and why? (Two complete sentences, please.) Make sure you explain your motivation clearly

Assume the economy is at full employment and that investment spending declines dramatically. If the goal is to restore full employment, government fiscal policy should be directed towardMultiple Choicean equality of tax receipts and government expenditures.a reduction of subsidies and transfer payments and an increase in tax rates.an excess of tax receipts over government expenditures.an excess of government expenditures over tax receipts.

The expenditure multiplier increases asGroup of answer choicesthe income of individuals decreases.the income of individuals increases.the savings of individuals decreases.the savings of individuals increases.

Which changes will increase the circular flow of income?higherimportshigherinvestmenthighertaxationA yes no noB yes yes noC no yes yesD no yes no