When the consumption function is expressed as C = Ca + b (1- t) y, taxes are collected by the government as:
A) a constant proportion of income y.
B) a decreasing proportion of income y.
C) an increasing proportion of income y.
D) a lumpsum, and independent of y.
Correct Answer:
Verified
Q166: Q167: The balanced budget multiplier equals: Q168: The consumption function describes the relationship between Q169: If the economy finds itself at a Q170: Taxes are reduced by $50 billion and Q172: Midwest State University in Nebraska is trying Q173: If the marginal propensity to consume is Q174: When we graph the 45 degree line,
A) 1.
B) 1/
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents