Refer to the data. A 10 percent proportional tax on income would:
Answer the question on the basis of the following before-tax consumption
schedule for an economy:
A. affect neither the size of the multiplier nor the stability of the economy.
B. increase the size of the multiplier and make the economy more stable.
C. increase the size of the multiplier and make the economy less stable.
D. reduce the size of the multiplier and make the economy more stable.
D. reduce the size of the multiplier and make the economy more stable.
You might also like to view...
Which of the following increases as a result of an increase in real GDP?
i. autonomous expenditure ii. induced expenditure iii. potential GDP A) i only B) ii only C) iii only D) ii and iii E) i, ii, and iii
Suppose the equilibrium price of a gallon of milk is $4. If the government imposes a price floor of $5 per gallon of milk,
A) the quantity supplied of milk exceeds the quantity demanded. B) the quantity supplied of milk falls short of the quantity demanded. C) the supply increases. D) the market will not be affected. E) there will be a shortage of milk.