What effect would each of the following, taken alone, have on a federal budget that is currently
Question:
What effect would each of the following, taken alone, have on a federal budget that is currently balanced? How would the budgetary changes, where they occur, affect the national debt?
a. An increase in the percentage of income taxed in each of the federal personal income tax brackets
b. An increase in government expenditures for research on global warming
c. An equal increase in government expenditures and income tax revenues
d. An increase in defense expenditures and a decrease in corporate income tax revenues
e. An increase in Social Security payments by government matched by a decrease in a subsidy to a particular group in the economy, such as farmers
f. An exemption from federal income tax for interest earned on small savings accounts in banks
Step by Step Answer:
Economics Theory And Practice
ISBN: 9781118949733
11th Edition
Authors: Patrick J. Welch, Gerry F. Welch