The magnitude of the tax multiplier is smaller than the magnitude of the government expenditure multiplier because
A) a change in taxes does not change expenditures.
B) an increase in taxes decreases expenditures.
C) a decrease in government expenditure decreases tax revenue.
D) a change in taxes does not change expenditures by as much as the same size change in government expenditure.
E) a change in taxes creates additional induced taxes.
D
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A tax on the buyers of coffee will
a. increase the price of coffee paid by buyers, increase the net price of coffee received by sellers, and increase the equilibrium quantity of coffee. b. decrease the price of coffee paid by buyers, increase the net price of coffee received by sellers, and decrease the equilibrium quantity of coffee. c. increase the price of coffee paid by buyers, decrease the net price of coffee received by sellers, and decrease the equilibrium quantity of coffee. d. increase the price of coffee paid by buyers, decrease the net price of coffee received by sellers, and increase the equilibrium quantity of coffee.
In the late 1990s, Thailand, Malaysia, and Indonesia all experienced sharp declines in the value of their currencies; this resulted in economic instability and crisis. The collapse in the values of their currencies undermined their development by:
A. decreasing political instability. B. decreasing population growth. C. increasing corruption. D. reducing investment.
Which of the following constitute the types of unemployment occurring at the natural rate of unemployment?
A. Frictional and cyclical unemployment. B. Structural and frictional unemployment. C. Cyclical and structural unemployment. D. Frictional, structural, and cyclical unemployment.
A government using fiscal policy in an attempt to stimulate the economy would do which of the following?
A) Raise taxes. B)raise government spending. C) Lower interest rates. D) Raise interest rates.