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1. The more progressive the tax system, the:
a. Less is the built-in stability for the economy
b. Greater is the built-in stability for the economy
c. Less is the effect of crowding-out on the economy
d. Greater is the severity of business fluctuations on the economy
2. The so-called "recognition lag" associated with fiscal policy is a result of how slowly the U.S. Congress moves.
True
False
3. The portion of the public debt owed to foreigners does not represent any real economic burden to Americans because we received money from foreigners when we incurred the debt.
4. The Social Security program is a retirement system where payments to retirees come from their previous contributions.
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