Under current tax law individuals do not pay taxes on health insurance benefits they receive from their employers. As a result
A) the quality of health care provided is less than it would be if benefits were taxed.
B) politicians are encouraged to raise income and payroll taxes.
C) individuals are encouraged to want generous health coverage that reduces their incentives to cut costs.
D) the federal government spends more than it receives in tax revenue.
C
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Activists believe that monetary and fiscal policy will only work if it comes as a surprise to the public
a. True b. False Indicate whether the statement is true or false
Which of the following is the strongest evidence of a shift toward a more expansionary fiscal policy?
a. an increase in government spending as a share of the economy and an expansion in the size of the budget deficit b. a reduction in government spending as a share of the economy and a shift of the budget toward a surplus c. an increase in government spending as a share of the economy and a shift of the budget toward a surplus d. a reduction in government spending as a share of the economy and an expansion in the size of the budget deficit