In Our Simple Macro Model with Government,consider the Equation T

question 115

Multiple Choice

In our simple macro model with government,consider the equation T = (0.2) Y.Which of the following statements about this equation is correct?

• A)Total tax revenues are equal to 20% of disposable income.
• B)Total tax revenues are equal to 20% of real GDP.
• C)Net tax revenues are equal to 20% of disposable income.
• D)If national income increases by $1.00,then net tax revenue increases by $0.20.
• E)If total tax revenue increases by $0.20,then national income increases by $1.00.

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Definitions:

Environmental Stimulus

Any external event or factor that influences an organism's behavior or physiological responses.

Motivates Behavior

The underlying reasons or incentives that drive individuals to engage in certain actions or behaviors.

Homeostasis

The autonomous mechanism through which living organisms maintain balance while adapting to conditions most favorable for their survival.

Body Temperature

The measure of the body's ability to generate and get rid of heat, reflecting the balance between the body's heat production and its heat loss.