If the MPC is 0.9, the tax multiplier is
A. -10.
B. -9.
C. -1.10.
D. 10.
Answer: B
You might also like to view...
The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
Stricter laws and regulations to protect intellectual property rights
A) will tend to have little impact on an economy since intellectual property is not tangible. B) will create a stronger and more successful black market for intellectual property. C) will help to create a more successful market system. D) will only benefit those companies whose intellectual property rights have in the past been ignored.
Eamon buys a new barbecue using his credit card. In other words, Eamon has used ______ to purchase the barbecue.
a. a guaranteed loan b. currency c. fiat money d. a demand deposit
Assume that Greece has a comparative advantage in fish and Germany has a comparative advantage in cars. If these two countries specialize and trade according to their comparative advantage
A. all individuals in both countries will benefit. B. Greece will specialize in and export cars. C. Germany will produce more cars than in the absence of trade. D. Germany will produce more fish than in the absence of trade.