Answer the following questions true (T) or false (F)
1. In absolute value, the tax multiplier is greater than the government purchases multiplier.
2. If government increases taxes by the same amount it increases government spending, there will be no effect on aggregate demand: the increase in government spending is offset by an equal decrease in consumption spending by households.
3. The tax multiplier is calculated as "one minus the government purchases multiplier."
1. FALSE
2. FALSE
3. FALSE
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The money cost of a particular good will approximate its opportunity cost if
A. there are serious distortions in the market. B. the market functions well. C. there is much specialization in the market. D. nations are exploiting the law of comparative advantage.
Most nations all over the world have raised trade barriers over the past decade.
a. true b. false
What characterizes a constant-cost industry and what causes it to be a constant-cost industry?
What will be an ideal response?
Canada's economy is considered to be at "full employment" when:
What will be an ideal response?