In our simple macro model with government,which statement correctly describes the following equation: = (0.75)Y?
A)If disposable income increases by $0.75,then national income increases by $1.00 and total tax revenue rises by $0.75.
B)Net tax revenue is equal to 75% of national income.
C)If national income increases by $1.00,then disposable income increases by $0.75 and net tax revenue increases by $0.25.
D)Net tax revenue is equal to 25% of disposable income.
E)If national income increases by $1.00,then disposable income increases by $0.25 and net tax revenue increases by $0.75.

Question

In our simple macro model with government,which statement correctly describes the following equation:  = (0.75)Y?
A)If disposable income increases by $0.75,then national income increases by $1.00 and total tax revenue rises by $0.75. 
B)Net tax revenue is equal to 75% of national income. 
C)If national income increases by $1.00,then disposable income increases by $0.75 and net tax revenue increases by $0.25. 
D)Net tax revenue is equal to 25% of disposable income. 
E)If national income increases by $1.00,then disposable income increases by $0.25 and net tax revenue increases by $0.75.

Quizplus · Accepted Answer

The Answer of In our simple macro model with government,which statement correctly describes the following equation:  = (0.75)Y?
A)If disposable income increases by $0.75,then national income increases by $1.00 and total tax revenue rises by $0.75. 
B)Net tax revenue is equal to 75% of national income. 
C)If national income increases by $1.00,then disposable income increases by $0.75 and net tax revenue increases by $0.25. 
D)Net tax revenue is equal to 25% of disposable income. 
E)If national income increases by $1.00,then disposable income increases by $0.25 and net tax revenue increases by $0.75.

In Our Simple Macro Model with Government,which Statement Correctly Describes