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  3. Liberty ECON 214 Exam 3 Answers Complete Solutions

Contents

  • 1  Liberty ECON 214 Exam 3 Answers Complete Solutions
      • 1.0.1 Question 1
      • 1.0.2 Question 2
      • 1.0.3 Question 3
      • 1.0.4 Question 4
      • 1.0.5 Question 5
      • 1.0.6 Question 6
      • 1.0.7 Question 7
    • 1.1 STATUS
      • 1.1.1 Question 8
      • 1.1.2 Question 9
      • 1.1.3 Question 10
      • 1.1.4 Question 17
      • 1.1.5 Question 18
      • 1.1.6 Question 19
      • 1.1.7 Question 20
      • 1.1.8 Question 21
      • 1.1.9 Question 27
      • 1.1.10 Question 28
      • 1.1.11 Question 29
      • 1.1.12 Question 30
      • 1.1.13 Question 31
      • 1.1.14 Question 32
      • 1.1.15 Question 33
      • 1.1.16 Question 34
      • 1.1.17 Question 35
      • 1.1.18 Question 36
      • 1.1.19 Question 37
      • 1.1.20 Question 38
      • 1.1.21 Question 39
      • 1.1.22 Question 40

 Liberty ECON 214 Exam 3 Answers Complete Solutions

 

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Question 1

Using a credit card is most like:

Question 2

The bank in your hometown has decided to double the number of its local branch offices. How will this affect the bank’s balance sheet?

Question 3

A U.S. federal government budget deficit occurs when:

Question 4

Suppose you land a job with Google right out of college. Your economics training is very valuable to them, so you receive a starting annual salary of $65,000. What is the total amount of social insurance taxes you will be responsible for after your first year of work?

Question 5

An example of the multiplier effect is when:

Question 6

The funds used for payments to Medicare recipients come primarily from:

Question 7

If the marginal propensity to consume is equal to 0.75, the spending multiplier is equal to:

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Question 8

Refer to the following table to answer the questions that follow. Using the table, what is the marginal income tax rate of a $5,000 raise for someone who currently makes $85,650 per year?

Question 9

Which of the following is NOT considered part of M2?

Question 10

A budget is:

Question 17

Supply­side fiscal policy involves the use of:

Question 18

The largest component of M2 is:

Question 19

Use the following example to answer the questions that follow: Imagine that you deposit $25,000 in currency (which you had been storing in your closet), into your checking account at the bank. Assume that this institution has a required reserve ratio of 25%. As a result of this deposit, by how much will the bank’s required reserves increase?

Question 20

An implementation lag happens because:

Question 21

Some proponents of entitlement­program reform suggest indexing Social Security benefits to the consumer price index (CPI):

Question 27

In economic terms, how would you state what has happened when your neighbor says he is unwilling to help you mow your lawn because you are unwilling to help him teach his kids how to speak with a British accent?

Question 28

One argument for tax cuts when the government is running a budget deficit is:

Question 29

For something to be considered money, it must:

Question 30

Refer to the following table to answer the questions that follow. Using the table, what is the value of M2 that is not part of M1?

Question 31

Fiscal policy includes:

Question 32

___________ is an example of an automatic stabilizer.

Question 33

A marginal tax rate is:

Question 34

Fiscal policy is:

Question 35

The “crowding­out” critique is based on the idea that:

Question 36

The United States has a:

Question 37

According to the U.S. Federal Tax Rates chart from the textbook (Figure 15.6), a person earning $100,000 in a given year is in the 28% tax bracket. How much will this individual owe in taxes for that year?

Question 38

Social Security and Medicare spending continue to grow and take up larger shares of the federal budget because:

Question 39

A progressive income tax system is one in which:

Question 40

In most nations, one or more governing bodies must approve government spending or new tax policies. This causes ___________ between setting fiscal policy and seeing its effects.

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