Because the revenue from personal income taxes increases as disposable income increases:
A) the multiplier effect decreases.
B) the marginal propensity to consume decreases as income increases.
C) the multiplier effect increases.
D) the marginal propensity to save increases as income decreases.
Correct Answer:
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Q170: An automatic stabilizer that works when the
Q171: When the economy is in a recession,
Q172: An example of an automatic stabilizer is:
A)tax
Q173: Which statement is CORRECT?
A)Automatic stabilizers indicate deliberate
Q174: If the government increases its spending when
Q176: Discretionary fiscal policy refers to changes in:
A)interest
Q177: Government transfer payments rise when the economy
Q178: Automatic stabilizers are government spending and taxation
Q179: The automatic stabilizer in government tax revenue
Q180: The fact that tax receipts fall during
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