Which of the Following Reduces the Size of the Government

question 61

Multiple Choice

Which of the following reduces the size of the government expenditure multiplier?

• A) A decrease in the marginal tax rate.
• B) An increase in the marginal propensity to consume.
• C) The presence of induced taxes.
• D) A decrease in the marginal propensity to import.

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1960s

The decade spanning from 1960 to 1969, notable for significant cultural, political, and technological changes around the world.

1950s

A decade marked by post-World War II recovery, significant cultural and economic changes, and the start of the Cold War era.

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