If the marginal propensity to consume is 0.75, then the value of the tax multiplier is
A) -2.5.
B) -3.
C) 1.25.
D) 1.4.
B
Economics
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Another term for "don't put all your eggs in one basket" is
A) moral hazard. B) indirect finance. C) asymmetric information. D) portfolio diversification.
Economics
Tasha decides that when homes in her neighborhood are selling for $150,000 she will not sell her home. When average prices rise to $175,000, she decides that she will put her home on the market. This is an example of:
a. market demand. b. market-day supply. c. an excess supply of homes. d. a positively-sloped supply curve. e. a negatively-sloped supply curve.
Economics