If the MPS is 0.1 and the income tax rate is 0.33 the marginal leakage rate for a closed economy is
A) 0.033.
B) 0.23.
C) 0.43.
D) 0.397.
D
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In a perfectly competitive market, the market price is $23. At the current level of output, a firm has a marginal cost of $28. What should the firm do?
A) produce a larger output to make more profit B) nothing, it is currently maximizing profit C) produce less output to make more profit D) shut down E) raise the price of its product
Why would a higher tax rate lower the government purchases multiplier? What does the tax rate have to do with the government purchases multiplier?
What will be an ideal response?
As is shown by the example of college dropout Bill Gates, more education does generally not pay off
a. True b. False
Aggregate expenditure will not equal GDP unless
a. next exports are zero. b. transfer payments are zero. c. inventory investment is positive. d. inventory investment is zero. e. inventory investment is negative.