To the extent that a direct expenditure offset results from an expansionary fiscal policy,
A) the fiscal policy will not be discretionary.
B) the time lags associated with the implementation of fiscal policy will shorten.
C) the stimulative effect will be less than anticipated.
D) the stimulative effect will be more than anticipated.
C
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If the government wants to raise tax revenue and shift most of the tax burden to the sellers, it would impose a tax on a good with a:
a. steep (inelastic) demand curve and steep (inelastic) demand curve. b. steep (inelastic) demand curve and a flat (elastic) supply curve. c. flat (elastic) demand curve and a steep (inelastic) supply curve. d. flat (elastic) demand curve and a flat (elastic) supply curve.
If a tax rate is constant as income rises, the tax is proportional
Indicate whether the statement is true or false