The multiplier for changes in taxes is smaller than the multiplier for changes in government purchases because not every dollar of tax cut is spent.
Answer the following statement true (T) or false (F)
True
You might also like to view...
Which of the following is NOT a function of money? i. unit of account ii. store of value iii. unit of debt
A) i only B) ii only C) iii only D) both ii and iii E) both i and ii
If a firm raises funds by recruiting additional owners to invest in the firm
A) the firm's net worth would decrease. B) the firm's financial capital would decrease. C) the firm's financial capital would increase. D) the firm's stock price would decrease.
Which one of the following is an example of a normative statement?
A) A digital camera costs more than a disposable camera. B) Most digital cameras sold in the United States are imported from other countries. C) A camera makes a good wedding gift. D) More people will buy digital cameras as their prices decline.
National income accounting can best be characterized as:
a. a set of rules used to summarize economic activity over a given period of time. b. a method for comparing different political systems. c. a microeconomic model of the economy used by the Federal Reserve bank. d. a statistical measure of the income received by consumers as opposed to businesses. e. a standardized economic report authored by politicians.