Mathematically, the value of the tax multiplier in terms of the marginal propensity to consume (MPC) is given by the formula:
A. MPC ? 1.
B. (MPC ? 1) / MPC.
C. 1 / MPC.
D. 1 ? [1 / (1 ? MPC)].
Answer: D
You might also like to view...
A point on the supply curve can illustrate the
A) price and the corresponding quantity supplied. B) marginal cost of that unit of the good. C) price the consumer is willing to pay. D) Both answers A and B are correct. E) Both answers A and C are correct.
The figure above shows the demand for fruit snacks. Which movement reflects how consumers would react to an increase in the price of a fruit snack that is expected to occur in the future?
A) from point a to point e B) from point a to point b C) from point a to point c D) from point a to point d
The cross-price elasticity between baseballs and tennis balls is likely to be a large positive number
a. True b. False Indicate whether the statement is true or false
When a price is presented in context to another, a firm is
A) discriminating. B) maximizing profits. C) marking up. D) framing.