1.Discretionary refer to those items which we do, on purpose, like Discretionary fiscal policy and Discretionary Outlays.

• False
• True

2.The government spending multiplier is more powerful than the taxation multiplier by 1.

• False
• True

3.Deficit spending and tax policy often change the savings patterns of American workers, interfering with some of the economic growth which we might otherwise have experienced.

• False
• True

4.Payroll Taxes (FICA and FUTA) are paid only by employers.

• False
• True

5.The time delay associated with government realizing that a problem (such as a recession) exists is call the Recognition Lag.

• False
• True

6.The Largest source of Federal Revenues are corporate income taxes.

• False
• True

7.In Kind Transfers are payments given, not in the form of money.

• False
• True

8.Crowding out takes place when deficit spending absorbs available savings and reduces the amount of saving which can be converted to investment spending.

• False
• True

9.Historically income tax rates have been on the rise for decades..

• False
• True

10.The 3% of the population with the highest incomes pay 51% of all federal income taxes.

• False
• True

11.Interest on the federal Debt is a minor part of the Federal Budget.

• False
• True

12.Fiscal policy multipliers create the multiplicative impact of changes in government spending and taxation.

• False
• True

13.The realities of American politics are such that what the president requests from congress, to deal with an economic problem seldom is what congress passes.

• False
• True