A decrease in the income tax rate (t) will
A) increase the full-employment budget surplus
B) increase the size of the expenditure multiplier
C) increase disposable income and autonomous spending
D) increase consumption but decrease saving
E) none of the above
Correct Answer:
Verified
Q40: If the savings function is of the
Q41: Assume a model where marginal propensity to
Q42: Assume a model with income taxes in
Q43: In a model with income taxes, if
Q44: Assume the savings function is defined as
Q45: In a model with income taxes, assume
Q46: The full-employment budget surplus increases if
A)government transfer
Q48: In 2009, the U.S.federal budget deficit was
A)about
Q49: A decrease in the full-employment budget surplus
Q50: If the full-employment budget surplus is positive
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