A negative income tax program is designed to assist the unemployed

Refer to Table 10.1. The value of the tax multiplier in this economy is

A) 0. B) -2. C) -4. D) -5.

Which of the following is true of fiscal spending at the federal, state, and local levels of the U.S. government?

a. In 2009, total government spending equalled around $1 billion. b. Investment expenditure in the U.S. exceeds the total spending at all levels of government. c. Government spending at federal, state, and local levels declined steadily from the 1960s until about 1980. d. Through the 1950s and 1960s, the U.S. government maintained a balanced budget. e. Federal government spending exceeds state and local government spending in the U.S.