If an external cost exists, then who bears the external cost in an unregulated competitive market transaction?

How do the marginal propensity to consume, the marginal propensity to import, and the income tax rate influence the multiplier?

What will be an ideal response?

Answer the following statement(s) true (T) or false (F)

1.The tax cuts made by Presidents Johnson and Reagan both led to a decline in economic growth. 2.Over time, any permanent change in government purchases must be fully offset by a change in private expenditure. 3.The time span before enough data are gathered to indicate the actual presence of a downturn is known as the recognition lag. 4.Unemployment insurance is the most important automatic stabilizer. 5.Changes in government transfer payments or tax collections that automatically tend to counter business cycle fluctuations are known as discretionary policies.