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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Definitions:

Observed Frequencies

The actual counts of occurrences for specific categories or outcomes in a data set.

Null Hypothesis

A default hypothesis that there is no significant difference or effect, intended to be contested by an alternative hypothesis.

Expected Frequency

The predicted number of times an outcome is expected to occur in a statistical experiment, based on theoretical probability distribution.

Significance Level

The threshold used in statistical testing to determine if a result is statistically significant, commonly set at 0.05, indicating a 5% risk of concluding an effect exists when it does not.