With a proportional income tax,
A) each individual pays whatever he/she is able to pay
B) each individual pays the same amount of money to the government
C) each individual pays the same percent of income in the form of taxes
D) the spending multiplier is unaffected by the tax rate
E) the spending multiplier increases as the tax rate increases
Correct Answer:
Verified
Q1: With a proportional income tax,
A)the tax multiplier
Q2: In which of the following situations will
Q3: When we relax the assumption that net
Q4: If the MPC is equal to .75
Q6: In a model with a proportional income
Q7: The balanced budget multiplier
A)increases as MPC increases
B)increases
Q8: If the government increased autonomous net taxes
Q9: If the government wants to increase equilibrium
Q10: If the MPC equals 0.75 and the
Q11: If the MPC = 0.8 and both
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