Were Social Security and Medicare the largest contributors of revenue for the federal government in Fiscal Year 2019? Explain.(1 point)

Question

Responses

Yes, because Social Security and Medicare taxes made up more than 50% of the revenue in Fiscal Year 2019 with $1.718 trillion.
Yes, because Social Security and Medicare taxes made up more than 50% of the revenue in Fiscal Year 2019 with $1.718 trillion.

Yes, because Social Security and Medicare taxes contributed about $1.542 trillion in Fiscal Year 2019 while individual income taxes only contributed $1.518 trillion.
Yes, because Social Security and Medicare taxes contributed about $1.542 trillion in Fiscal Year 2019 while individual income taxes only contributed $1.518 trillion.

No, because individual income taxes contributed about $1.718 trillion in Fiscal Year 2019 while Social Security and Medicare taxes only contributed $1.242 trillion.
No, because individual income taxes contributed about $1.718 trillion in Fiscal Year 2019 while Social Security and Medicare taxes only contributed $1.242 trillion.

No, because corporate income taxes contributed about $1.242 trillion in Fiscal Year 2019 while Social Security and Medicare taxes only contributed $230.2 billion.
2.What is the discount rate?(1 point)
Responses

The discount rate is the interest rate banks charge each other for overnight and short-term lending.
The discount rate is the interest rate banks charge each other for overnight and short-term lending.

The discount rate is a misnomer, as it is the interest rate at which financial institutions charge to the riskiest of borrowers.
The discount rate is a misnomer, as it is the interest rate at which financial institutions charge to the riskiest of borrowers.

The discount rate is interchangeable with prime rate, the interest rate at which financial institutions charge to its least-risky, or best, customers.
The discount rate is interchangeable with prime rate, the interest rate at which financial institutions charge to its least-risky, or best, customers.

The discount rate is the interest rate at which the Federal Reserve charges to financial institutions on loans issued at the discount window.
3.What monetary policies should the Federal Reserve enact to combat higher inflation rates for consumer goods and services?(1 point)
Responses

Enact contractionary monetary policies to increase money supply.
Enact contractionary monetary policies to increase money supply.

Enact expansionary monetary policies to increase the money supply.
Enact expansionary monetary policies to increase the money supply.

Enact expansionary monetary policies to decrease the money supply.
Enact expansionary monetary policies to decrease the money supply.

Enact contractionary monetary policies to decrease the money supply.

Answer 1

1. Were Social Security and Medicare the largest contributors of revenue for the federal government in Fiscal Year 2019?

   • No, because individual income taxes contributed about $1.718 trillion in Fiscal Year 2019 while Social Security and Medicare taxes only contributed $1.242 trillion.

   Social Security and Medicare taxes were significant, but individual income taxes were higher in terms of total revenue collected by the federal government.

2. What is the discount rate?

   • The discount rate is the interest rate at which the Federal Reserve charges to financial institutions on loans issued at the discount window.

   The discount rate is specifically the rate at which banks can borrow from the Federal Reserve, not the rates charged between banks or to consumers.

3. What monetary policies should the Federal Reserve enact to combat higher inflation rates for consumer goods and services?

   • Enact contractionary monetary policies to decrease the money supply.

   To combat inflation, the Federal Reserve typically uses contractionary monetary policies, which involve raising interest rates and reducing the money supply to help lower inflation.