Using the simple Keynesian model, consider the case where taxes are lump-sum. Compared to the model without taxes, the investment multiplier in this model will

a. not change.
b. be larger.
c. be smaller.
d. be equal to 1


A

Economics

You might also like to view...

Which of the following countries has the largest union membership measured as the percentage of civilian employees in unions?

a. The United States. b. Japan. c. The United Kingdom. d. Sweden.

Economics

The demand for health care is perfectly elastic

a. True b. False Indicate whether the statement is true or false

Economics

Which of the following is assumed constant along the demand curve for gasoline?

a. the price of gasoline and the prices of related goods b. the price of gasoline, buyers' incomes, and tastes c. all variables affecting demand other than the price of gasoline d. all variables affecting demand other than the supply of gasoline e. buyers' incomes and tastes, but not the prices of related goods

Economics

When economists say an individual has made a rational choice, they mean the individual has

a. made the choice by weighing their own subjective costs and benefits. b. made a "good" decision, one that reasonable outside observers would have also made. c. neglected to consider the unintended consequences arising from their decision. d. ignored their own personal interests and made the choice that is best for society.

Economics