Which of the following will NOT happen if the income tax rate (t) is increased?
A) the expenditure multiplier and consumption will both decrease
B) disposable income, saving, and consumption will all decrease
C) consumption and income both will decrease, but saving will increase
D) the full-employment budget surplus will increase
E) autonomous spending will stay the same but national income will decrease
Correct Answer:
Verified
Q24: Assume a model with no foreign sector,
Q25: An increase in government spending will
A)not affect
Q26: Generally speaking, the effect on income resulting
Q27: Assume a simple model with no government
Q28: Assume a model of the expenditure sector
Q30: The fluctuations in the income level that
Q31: If total autonomous spending is A? =
Q32: Assume an economy with no foreign sector,
Q33: Assume an economy with no foreign sector,
Q34: In a model with income taxes, an
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