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What is the chief way the federal government raises revenue?
Individual income taxes. @DJSCREAM21
If the government raises everyone's taxes consumers have less money or income to spend on consumer goods and services?
true A+
What happens to the economy when the government raises or lowers taxes?
That depends on the overall state of the economy, the nature of the tax, what the government does with any additional money collected, the nature of any expenditures reduced in connection with a tax reduction, and whether the government borrows more or less as a result, and whether the taxes in question are actually collected. Probably some other variables involved that don't come immediately to mind.
If Marginal propensity to consume of 06 and a marginal propensity to import of 02 the government increases its spending by 2 billion and raises taxes by 1 billion what happens to equilibrium income?
The equilibrium income would increase 1.06 billion dollars.
What do you do when marginal costs exceeds marginal revenue?
When MC>MR, then there is an overallocation of resources. This usually happens with a negative externality. The government tries to taxes these businesses so that they will produce less. Therefore, a way to fix overallocation of resources is to tax that company and reduce their output.
Is a government that is elected by the people raises taxes a legitimate or illegitimate?
Legitimate,becausethepeopleelected the government.
How is government funded and raises money?
through taxes and borrowing from other countries
If their is high inflation and the federal government spends less and raises taxes the government is utilizing what?
fiscal policy
What is the chief way the federal government raises revenue?
Individual income taxes. @DJSCREAM21
What If the government raises taxes and everything else remains constant?
comsumer will have less money to spend
What happens when the government raises taxes?
When they raise taxes, people and businesses are required to pay more into the government. By raising taxes, it takes money out of peoples pockets and therefore they and businesses have less to invest. Investment is what drives the economy. Businesses cannot expand, they don't hire people to work, businesses shrink, people are put out of work and the economy as a whole shrinks.
What happens to a net personal income with the government lowers taxes?
If the government lowers your taxes your NET income increases.
If the government raises everyone's taxes consumers have less money or income to spend on consumer goods and services.?
true A+
If the government raises everyone's taxes consumers have less money or income to spend on consumer goods and services?
true A+
What happens to taxes when the government increases spending?
they go up
What happens to net personal income when the government raises taxes?
Generally if your gross income stays the same and the government raises taxes, it decreases your net personal income. On the macro scale, as government raises taxes, most people's net personal income decreases, which means their disposable income also decreases. Since their disposable income decreases, they spend less (unless they want to just get deeper in debt), which further decreases the gross income of those they buy goods and services from with their disposable income. This can actually lead to a decrease in total tax revenue as the gross incomes of the population can drop a greater percentage than the increased percentage of the taxes; 40% of $80,000 is only $32,000 while 35% of $100,000 is $35,000.
Identify the several different taxes by which the Federal Government raises revenue?
The Income Tax. The Corporation Income Tax. Social Insurance Income Tax. Excise Taxes. Estate and Gift Taxes. Customs Duties.
