State governments in the United States can raise revenue by all the following means except
a. increasing the money supply.
b. increasing sales taxes.
c. increasing income taxes.
d. increasing taxes on corporate profits.
Answer: A
Learn More :
Government Deficits and Debt
- Whether real seignorage revenue increases when the rate of money growth increases depends on whether
- Consider an economy that has the following monetary data.
- Consider an economy that has the following monetary data.
- Real money demand in the economy is given by L = 0.5Y - 2500i, where Y is real income and i is the nominal interest rate. In equilibrium, real money demand L equals real money supply M/P. Suppose that Y equals 1000 and the real interest rate is 0.02. What is the maximum amount of seignorage revenue?
- Real money demand in the economy is given by L = 0.5Y - 2500i, where Y is real income and i is the nominal interest rate. In equilibrium, real money demand L equals real money supply M/P. Suppose that Y equals 1000 and the real interest rate is 0.02. At what rate of inflation is seignorage maximized?
- Assume that in an all-currency economy the real interest rate is 4%, the expected rate of inflation is 8%, and the nominal interest rate is 12%. The real monetary base equals $50 billion. The real seignorage revenue collected by the government would equal
- The real seigniorage collected by the government in an all-currency economy is the product of
- In an all-currency economy in which real output and the real interest rate are fixed and the rates of money growth and inflation are constant, the inflation rate equals
- In which case would you be most likely to expect inflation to occur?
- The relationship between the government deficit and the change in the monetary base is
- Seigniorage is the revenue a government raises by
- Deficits are a burden on future generations if they
- According to the Ricardian equivalence proposition, current deficits
- A decreased government deficit created by a lump-sum tax increase will increase national saving if
- If the deficit is 0.02 times GDP, the existing debt/GDP ratio is 0.5, and the growth rate of nominal GDP is 0.03, then the change in the debt-GDP ratio is
- Increases in the debt-GDP ratio are primarily caused by
- The total value of government bonds outstanding at any particular time is called the
- The average cost of the distortion created by taxes
- Assume that the lost output due to tax distortions is proportional to the square of the tax rate. If the average cost of the distortion created by taxes is currently $1000, and the tax rate is increased from 40% to 50%, the average cost of the distortion created by taxes will increase to
- Taxes distort economic behavior because they
- Suppose that all workers place a value on their leisure of 40 goods per day. The production function relating output per day Y to the number of people working per day N is
- Suppose that all workers place a value on their leisure of 40 goods per day. The production function relating output per day Y to the number of people working per day N is
- A decrease in the average tax rate, with the marginal tax rate held constant, will
- An increase in the marginal tax rate, with the average tax rate held constant, will
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.