If the MPC is 0.6, the tax multiplier is
A. -0.6.
B. -1.5.
C. -2.5.
D. -4.
Answer: B
You might also like to view...
Refer to the figure above. What is the optimal number of machines rented if the market rental price is $5 per month?
A) 20 machines B) 40 machines C) 80 machines D) 100 machines
When a good is imported into the United States, a ________is created
A) supply of foreign currency with no effect on the market for the dollar B) demand for dollars with no effect on markets for foreign currencies C) supply of foreign currencies and a demand for dollars D) demand for foreign currencies and a supply of dollars
Explain what a "perfectly contestable" market means. Give an example of a perfectly contestable market. Explain why the outcome in a perfectly contestable market is that firms produce efficiently
What will be an ideal response?
Which of the following are policy levers?
A Population growth, spending behavior, and invention B. Wars, natural disasters, and trade disruptions C. Government regulation, tax policy, and the availability of money D. Jobs, prices, and growth