In the traditional Keynesian model, an income tax cut raises real GDP because
A) consumption spending depends positively on after-tax income.
B) of the crowding-out effects of taxes.
C) consumption spending depends negatively on after-tax income.
D) consumption spending is not related to after-tax income.
A
Economics
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If the demand curve for a good is unit elastic within a specific price range, this implies that within that price range the
a. consumers do not react to a change in price b. quantity demanded remains unchanged c. good has no substitutes d. good has no complements e. percentage change in the quantity demanded equals the percentage change in price
Economics
The value of the deposit multiplier is 1 divided by the required reserve ratio
a. True b. False Indicate whether the statement is true or false
Economics