Suppose Output Is Demand Determined

question 90

Multiple Choice

Suppose output is demand determined.An increase in the net tax rate ________ the marginal propensity to spend and thus ________ the simple multiplier.

• A)raises; raises
• B)raises; lowers
• C)causes no change in; raises
• D)lowers; lowers
• E)lowers; raises

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Definitions:

Types of Rehearsal

Refers to the different methods used for practicing or memorizing information, such as maintenance rehearsal (simple repetition) and elaborative rehearsal (linking new information with existing knowledge).

Elaborative

Pertaining to a method or process that involves adding details or expanding on information to facilitate understanding or memory.

Maintenance

The process of preserving a condition or situation or the action of keeping something in a state of repair or efficiency.

Elaborative Rehearsal

A memory technique that involves thinking about the meaning of the term to be remembered, as opposed to simply repeating the word to oneself.