Using the simple Keynesian model, consider the case where taxes are lump-sum. Compared to the model without taxes, the investment multiplier in this model will

a. not change.
b. be larger.
c. be smaller.
d. be equal to 1

A

Economics

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Refer to the table below. Suppose all firms in this industry have identical costs to this firm and are producing 15 units of output. One can predict thatQuantityTotal RevenueExplicit CostsImplicit Costs1050365157563620100937251251258301501619

A. firms will attempt to lower their implicit costs. B. price must rise. C. new firms will enter the industry. D. old firms will exit the industry.

Economics

A competitive firm will maximize profit by hiring the amount of an input at which

A. the last unit of the input hired adds the same amount to total output as to total cost. B. the additional output from the last unit of the input hired exceeds the additional cost of the last unit by the largest amount. C. the additional revenue from the last unit of the input hired exceeds the additional cost of the last unit by the largest amount. D. the last unit of the input hired adds the same amount to total revenue as to total cost.

Economics