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:

Humorous E-mail

An email sent with the intent to entertain the recipient, often used in marketing to engage customers in a light-hearted way.

Functional Risk

The possibility that a product or service will not perform as expected, leading to dissatisfaction or financial loss for the consumer.

Physiological Risk

The potential of experiencing physical harm or adverse health effects from products, services, or activities.

Busy Intersection

A junction where multiple roads meet, often characterized by a high volume of vehicle and pedestrian traffic, making it a key focal point for transportation flow.