The government purchases multiplier will be larger if the marginal income tax rate decreases
Indicate whether the statement is true or false
TRUE
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Which of the following explains why purchasing power parity does not completely explain long-run fluctuations in exchange rates?
A) Most countries do not impose barriers to trade. B) Some goods and services produced in any country are not traded internationally. C) Consumer preferences for goods and services across countries are very similar. D) Most countries have free markets with little, if any, government regulation.
The primary explanation for why a regulatory commission may protect the monopoly it is supposed to regulate is that the commission members
a. regularly receive gifts and bribes b. are incompetent c. are experts sympathetic to industry management d. work to increase industry competition e. are directly accountable to the public
A document describing how much profit or loss was earned by a business over a given length of time is called
a. a balance sheet b. an income statement c. a statement of cash flows d. a profit-and-loss statement
Which of the following is not true?
A. George H.W. Bush won reelection after agreeing to a small tax increase as part of a political compromise. B. George W. Bush won election after claiming tax cuts would pay for themselves. C. Ronald Reagan claimed tax cuts would spur economic gains that would increase tax revenues before the tax cuts led to significantly lower revenues. D. After Bill Clinton raised taxes on upper income individuals to reduce federal budget deficits his party lost heavily in the following congressional elections.