There are two kinds of changes in net taxes: First, net taxes can change if the government changes its tax or transfer policies. Second, net taxes change automatically as income rises and falls, without any change in policy. The _________ kind of change sets off the multiplier process, while the _________ kind of change occurs during the multiplier process

Question

a. first; first.
b. first; second.
c. second; first.
d. second; second.
e. None of the above.

Answer 1

B