Financial Management Module 4 Inflation and Taxation

Assignment Question 1

If rapid Inflation occurs in a relatively full economy, well coordinated monetary and fiscal policies would involve a Budget

Assignment Question 2

The Federal reserve bank act of 1978 requires the Fed to pursue full employment as well as low inflation but Mr. Greenspan has said that he favors legislation to make price stability the Fed's sole objective." The main reason the chairman of the Fed prefers to have price stability as his sole objective is because

Assignment Question 3

People and countries are being ruined because of high

Assignment Question 4

Taxes on expenditures (Vat and Customs and Excise) provide more tax receipts for government than taxes on incomes (Income Tax, Corporation Tax, Petroleum, Revenue Tax).

Assignment Question 5

An income policy is designed to

Assignment Question 6

Wage/price controls allow us to

Assignment Question 7

If we are at the natural rate of unemployment, an increase in aggregate demand will lower unemployment in the short run

Assignment Question 8

The allocation of revenues from extra taxes to specific outcomes is known as 'the regulator'

Assignment Question 9

The large reduction in numbers of low income households facing implicit marginal tax rates of 100% suggests some progress in removing the 'poverty trap'

Assignment Question 10

For a given expected inflation rate and a given natural unemployment rate, an increase in actual unemployment:

Assignment Question 11

Which of the following causes the inflation rate to increase?

Assignment Question 12

A decrease in the duration of unemployment benefits