In Our Simple Macro Model with Government,which Statement Correctly Describes

question 11

Multiple Choice

In our simple macro model with government,which statement correctly describes the following equation: YD = (0.75) Y?

• A)If disposable income increases by $0.75,then national income increases by $1.00 and total tax revenue rises by $0.75.
• B)Net tax revenue is equal to 75% of national income.
• C)If national income increases by $1.00,then disposable income increases by $0.75 and net tax revenue increases by $0.25.
• D)Net tax revenue is equal to 25% of disposable income.
• E)If national income increases by $1.00,then disposable income increases by $0.25 and net tax revenue increases by $0.75.

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Definitions:

Corpus Callosum

The large band of neural fibers connecting the two brain hemispheres and carrying messages between them.

Brain

The organ located in the skull responsible for controlling the central nervous system, processing thoughts, emotions, and physical movements.

Brainstem

The central trunk of the brain, extending from the medulla to the diencephalon, responsible for controlling various involuntary functions such as breathing, heart rate, and sleep cycles.

Frontal Lobes

Portion of the cerebral cortex lying just behind the forehead; involved in speaking and muscle movements and in making plans and judgments.