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

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Definitions:

Variables

Elements, features, or factors that are likely to vary or change within the context of a study or an experiment.

Dual-route Theories

Theoretical approaches suggesting two separate pathways or mechanisms in the brain for processing information, often used in the context of reading and language comprehension.

External Theories

Concepts or explanations developed to understand phenomena outside an individual or organization, often involving the broader environment or society.

Consequences of Behavior

The outcomes or impacts that result from actions of an individual or group.