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Question 1 An example of government use of money to influence elections in the 20th century is increasing the size of the military in election years. increasing foreign aid in election years. increasing Social Security benefits in election years. reducing subsidies for mortgage insurance in election... show more Question 1
An example of government use of money to influence elections in the 20th century is
increasing the size of the military in election years.
increasing foreign aid in election years.
increasing Social Security benefits in election years.
reducing subsidies for mortgage insurance in election years.
mobilizing troops in election years.



Question 2
The machinery for making economic policy decisions is
complex and not under the president's full control.
simple but not under the president's full control.
complex but fully controlled by the president.
simple and fully controlled by the president.
complex but fully controlled by the president and party leaders.



Question 3
Contributing to the success of loophole politics prior to passage of the 1986 tax bill was the
strong support of policy entrepreneurs such as Ralph Nader.
existence of low marginal rates to offset revenues lost through deductions.
decentralized structure of Congress.
existence of tariff revenues to offset revenues lost through deductions.
strong support of the conservative coalition and Ralph Nader.



Question 4
John Kenneth Galbraith urges, as a solution to inflation, that
government cut taxes.
the private sector be allowed to adjust itself.
the money supply be held in check.
government control prices and wages.
government restrictions be lifted and taxes increased.



Question 5
When voting behavior and economic conditions correlate at the national but not at the individual level, it can be said that the voters are
heliocentric or earth conscious.
sociopathic or self-absorbed.
homeopathic or group related.
socialistic or ideology driven.
sociotropic or other regarding.



Question 6
Economic policies adopted by a president to reduce inflation are most likely to have the negative effect of
raising taxes.
lowering interest rates.
raising unemployment.
raising the budget deficit.
decreasing wages.



Question 7
In general which of the following is true?
Projections of future budget deficits have been relatively accurate through the years.
Projections of future budget surpluses have been relatively accurate through the years.
While projections of future budget deficits have been relatively accurate through the years, projections of future budget surpluses have NOT been accurate.
While projections of future budget surpluses have been relatively accurate through the years, projections of future budget deficits have NOT been accurate.
Projections of both budget deficits and surpluses have NOT been accurate through the years.



Question 8
Fiscal policy attempts to affect the economy through
money and bank deposits.
the price of money (interest rate).
taxes.
expenditures.
C and D.



Question 9
Entitlements such as Social Security or Medicare payments, veterans' benefits, or Food Stamps constitute about ______ of the federal budget.
one-sixteenth
one-tenth
one-fourth
one-half
two-thirds



Question 10
The executive agency that ensures that other agencies' legislative proposals are compatible with the president's program is the
CEA.
Treasury Department.
OMB.
Fed.
NSA.



Question 11
Among President Reagan's economic priorities in his first term were all of the following except
reducing unemployment.
reducing the size of the federal government.
stimulating economic growth.
increasing U.S. military strength.
A and C.



Question 12
Typically, the economic adviser with the closest link to the financial community is the
chairperson of the CEA.
secretary of the treasury.
director of the OMB.
chairperson of the Fed.
deputy director of the OMB.



Question 13
From the inauguration of income tax up to the 1950s, tax rates tended to rise and fall with
the cycles of public opinion.
good and bad economic times.
war and peace.
Democratic and Republican administrations.
critical or realigning elections.



Question 14
The Budget Enforcement Act of 1990 imposed a cap on
credits.
entitlements.
new taxes.
sequesters.
discretionary spending.



Question 15
The most obvious loophole in the Congressional Budget Act of 1974 is that
the projections on which spending is based are subjective.
the president can increase spending ceilings by reallocating other funds.
there is nothing in the process that requires Congress to tighten the government's financial belt.
its key section has been declared unconstitutional.
its key section and numerous applications have been declared unconstitutional.



Question 16
The text suggests that, in theory and in practice, the Fed is independent
of the president.
of Congress.
of both the president and Congress.
of the president, but not Congress.
of Congress, but not the president.



Question 17
Which of the following statements concerning the Federal Reserve Board is incorrect?
Its members are confirmed by the Senate.
It has seven members.
Members serve
2 answers 2