Fiscal Stimulus Is Most Likely to Direct Resources into Productive

question 21

Multiple Choice

Fiscal stimulus is most likely to direct resources into productive projects when spending decisions are left in the hands of

• A) government agencies.
• B) consumers.
• C) Congress.
• D) lobbyists and special-interest groups.

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Definitions:

SUTA

A state-level tax paid by employers to fund the state’s unemployment insurance program.

FUTA

The Federal Unemployment Tax Act, which imposes a payroll tax on employers to fund state workforce agencies.

FICA

Refers to the Federal Insurance Contributions Act tax, which is a United States federal payroll tax imposed on both employees and employers to fund Social Security and Medicare.

Unemployment Taxes

Unemployment taxes are taxes paid by employers to fund the unemployment insurance system, providing benefits to workers who have lost their jobs.