The tax multiplier is the
A) magnification effect of a change in taxes on aggregate supply.
B) magnification effect of a change in taxes on the national debt.
C) magnification effect of a change in taxes on the budget deficit.
D) magnification effect of a change in taxes on government expenditures.
E) magnification effect of a change in taxes on aggregate demand.
E
You might also like to view...
This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single grade. They both will enjoy a higher grade when more effort is put into the project, but they also get pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each would get from the effort they individually put forth and the grade they jointly receive.According to the figure shown, if Joe puts forth high effort, then Sarah should:
A. give an ultimatum. B. put forth high effort. C. put forth low effort. D. leave school.
A country that is experiencing a balance of payments deficit and decides to keep its exchange rate at the current level will:
A. experience a trade surplus. B. gain foreign currency. C. sell more of its own currency. D. lose foreign currency.