The tax multiplier is the number that, when multiplied by the
A) budget deficit, gives us the change in total spending.
B) budget deficit, gives us the change in the public debt.
C) change in taxes, gives us the change in total spending.
D) change in government spending, gives us the change in total spending.
C
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Montana cattle ranchers are complaining about mountain state sheep ranchers whose animals are eating too much grass on the open range. The sheep ranchers claim that the cattle are eating too much of the grass. This is an example of
a. an external benefit. b. the reciprocal nature of externalities. c. the principal agent problem. d. a situation in which strict liability would be the more efficient solution.
A commercial bank has required reserves of $60 million and the reserve ratio is 20%. How much are the commercial bank's checkable-deposit liabilities?
A. $1,200 million B. $120 million C. $300 million D. $900 million
A bank's reserves include:
A. the bank's loan portfolio. B. U.S. Treasury Securities. C. vault cash. D. U.S. Treasury bills and vault cash.
A European Union official, Mr. McGreevey, claims a portion of EU law involves overregulation. McGreevey is suggesting the EU suffers in part from:
A. government failure. B. market failure. C. fairness. D. the rule of law.