Consider a Model with Demand-Determined Output and a Constant Price

question 71

Multiple Choice

Consider a model with demand-determined output and a constant price level.A decrease in the net tax rate causes ________ in autonomous spending and a ________ in the simple multiplier.

• A)a rise; rise
• B)a rise; fall
• C)no change; rise
• D)no change; fall
• E)a fall; fall

---

Definitions:

Ego Integrity

A sense of coherence and wholeness that one experiences upon reflecting on their life, typically achieved in late adulthood, according to Erikson's stages of psychosocial development.

Irrelevant

Not connected with or relevant to something.

Incomplete

A state of being not fully formed, finished, or lacking some parts.

Care

The provision of what is necessary for the health, welfare, maintenance, and protection of someone or something.