If taxes depend on income and the MPC is 0.8 and t is 0.4, the tax multiplier is
A. -1.54.
B. -1.92.
C. -2.5.
D. -2.7.
Answer: A
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A) helps forestall moral hazard. B) helps forestall adverse selection. C) gives rise to moral hazard. D) gives rise to adverse selection.
An increase in the amount of currency held by the public will raise the value of the deposit expansion multiplier
a. True b. False Indicate whether the statement is true or false
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Indicate whether the statement is true or false
Both the social sciences and the natural sciences employ ________ to help them understand the world around them.
A. implications B. models C. experiments D. traditional thinking