2. Government functions For each of the following scenarios involving the U.S. government, determine the primary function of government that is being served. The government levies a tax on consumers and businesses to pay for the provision of a public good (such as national defense). Productive function whereby the government promotes economic stability through fiscal policies O Productive function whereby the government produces goods that are difficult for private markets to supply Productive function whereby the government redistributes income from rich to poor Protective function whereby the government enforces property rights U.S. taxpayers who attended a college or university in the past year can deduct the interest paid on student loans from their taxable income. Maintaining competition Reallocating resources Promoting stability O Redistributing income

2. Government functions For each of the following scenarios involving the U.S. government, determine the primary function of government that is being served. The government levies a tax on consumers and businesses to pay for the provision of a public good (such as national defense). Productive function whereby the government promotes economic stability through fiscal policies O Productive function whereby the government produces goods that are difficult for private markets to supply Productive function whereby the government redistributes income from rich to poor Protective function whereby the government enforces property rights U.S. taxpayers who attended a college or university in the past year can deduct the interest paid on student loans from their taxable income. Maintaining competition Reallocating resources Promoting stability O Redistributing income

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter12: Federal Budgets And Public Policy

Section: Chapter Questions

Problem 3.8P

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