If taxes were a lump-sum amount, then the absolute value of the tax multiplier ________ it would be if taxes depend on income.
A. is equal to what
B. is larger than
C. is smaller than
D. could be either larger than or smaller than
Answer: B
You might also like to view...
The Fed purchases $1 million of U.S. government securities from First Bank. The desired reserve ratio is 10 percent, the currency drain ratio is zero, and banks loan all excess reserves. The money multiplier is equal to
A) 0.10. B) 1.0. C) 10.0. D) $1 million. E) 100.0.
The difference between a Euroloan interest rate and Eurodeposit interest rate is called
A) net interest rate. B) the forward premium. C) net profit rate. D) the spread.
A 10 percent increase in the price of neckties leads to a 5 percent decrease in the quantity demanded of neckties. The absolute price elasticity of demand is
A) 3. B) 0.33. C) 0.5. D) 2.
The components of a well-run incentive compensation scheme include all of the following EXCEPT
a. evaluating the identified performance measures b. avoiding rewards for outcomes that are not included in the performance measures c. rewarding workers who for meet performance measures d. displaying the wealth disparities between the executives and the line workers