Consider a Simple Macro Model with Demand-Determined Output

question 85

Multiple Choice

Consider a simple macro model with demand-determined output.In such a model,the smaller the marginal propensity to spend,the

• A)smaller the MPS.
• B)smaller the simple multiplier.
• C)larger is investment.
• D)larger the MPC.
• E)larger the simple multiplier.

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Definitions:

Real Estate Taxes

Taxes imposed on properties by local governments, calculated based on the assessed value of the property.

Taxable Income

Income that is subject to taxes, typically calculated by deducting deductions and exemptions from gross income.

Tax Schedule

Detailed tax documents filed with the IRS to report certain types of income, deductions, or credits.

W-2

A form used in the United States to report wages paid to employees and the taxes withheld from them.