The ________ the marginal tax rate, the ________ the effect on aggregate expenditure from a change in investment
A) smaller; smaller
B) smaller; larger
C) larger; smaller
D) larger; larger
E) More information about the effect on GDP is needed to answer the question.
C
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Given that resources can be allocated by the government, the market, a random process, or on a first-come first-serve basis, which of the following statements is true?
a. The market system is not entirely fair but it creates incentives to increase supplies and improve standards of living. b. The random process of allocation allows individuals to acquire purchasing power and enhances the value of the resources that they own. c. Since the government system does not distinguish between those who have income and those that do not, government allocation of resources is the most efficient. d. There will be no shortages under the first-come first-serve basis of allocation. e. A random process of allocation is fair in the sense that everyone gains and there are no losers.
The supply of loanable funds slopes upward to the ______________________.
Fill in the blank(s) with the appropriate word(s).