A tax-cut will have a greater effect on equilibrium GDP if the:
A. Marginal propensity to consume is smaller
B. Marginal propensity to save is smaller
C. Marginal propensity to save is larger
D. Average propensity to consume is larger
B. Marginal propensity to save is smaller
Economics
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What are the factors of production and their prices?
What will be an ideal response?
Economics
The real business cycle model best explains the procyclicality of the nominal money supply by
A) an unpredictable Federal Reserve. B) exogenous money. C) endogenous money. D) uncorrelated money.
Economics