If the MPC = 0.80, the tax multiplier is
A) -2.
B) -4.
C) -5.
D) -8.
B
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Refer to Figure 13.1. All else equal, a decrease in income taxes would best be represented by a movement from
A) point A to point B. B) point B to point A. C) point B to point C. D) point C to point B.
Federal budget deficits became progressively smaller during the 1990s, and turned into a surplus by 1998
Indicate whether the statement is true or false
Table 10.1Refer to Table 10.1, which shows the relationship between the price that Gladys charges for a product and the quantity of that product that Gladys sells. The marginal revenue that Gladys receives from selling the fourth unit of output is:
A. $3. B. $6. C. $10. D. $24.
The bowed shape of the traditional production possibilities curve reflects the
A. fact that not all resources are equally well-suited to producing all goods. B. negative side effects of economic growth. C. problems of inequality. D. costs of unemployment.