Suppose that the MPC out of disposable income was 0.8 and the marginal tax rate was 0.25 for a given economy.In this case,the value of the tax multiplier in the simple Keynesian model would be
A) 1.
B) -2.
C) 2.5.
D) 2.
E) none of the above.
Correct Answer:
Verified
Q13: According to the partisan theory,
A)politicians are viewed
Q14: If the tax function is T =
Q15: The structural deficit is
A)directly attributable to the
Q16: According to the partisan theory model,what motivates
Q17: Which of the following statements is (are)correct?
A)Even
Q19: The higher the marginal income tax rate,the
A)higher
Q20: Suppose that the MPC out of disposable
Q21: While deficits in the United States through
Q22: In the Keynesian model,
A)the autonomous expenditure multiplier
Q23: A change in government spending has a
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