If taxes depend on income, then the magnitude of the government spending multiplier ________ it would be if taxes were a lump-sum amount.
A. is larger than
B. is equal to what
C. could be either larger than or smaller than
D. is smaller than
Answer: D
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Critically evaluate the following statement. "The presence of risk and uncertainty poses a problem for the workings of the market."
What will be an ideal response?
If scientific research produces a technological breakthrough in the production of computer memory, then
a. business costs will increase, profits will fall, and production will decrease. b. business costs will fall, but profits will also fall, and production will decrease. c. business costs will fall, profits will improve, and production will increase. d. profits will increase because businesses will cut back production.
Which of the following is true of the production possibilities curve?
What will be an ideal response?
Suppose that consumers expect that the price of a product will increase in the future. The result is that:
A. the current demand for the product increases. B. the current demand for the product decreases. C. the current supply of the product increases. D. the current supply of the product decreases.