Question 17 (5 points) Federal Government taxes Are necessary for the Federal Government to spend money Destroy US dollars Create a disincentive to work Are not allowed by the US Consitutions Question 18 (5 points) Which taxing structure will stabilize the economy? Progressive Regressive Flat Taxes have no effect on the economy What is one reason the US had such high rates of Inflation after the Vietnam War? President Nixon wanted to divert attention from the Watergate scandal President Nixon thought Inflation would be good for the economy The Soviet Union stopped buying US dollars The public was unwilling to purchase US bonds to "finance" the war Question 20 (5 points) What tool does the US treasury and the FED use to control the amount of money circulating in the economy? Trust funds, like the Aviation Trust Fund Buying and Selling US bonds, bills, and notes Turning on and off the dollar printing press at the US Treasury The Federal Government cannot control the amount of money in circulations. Only US banks can control the money supply. MacBook Air