Net Tax Revenues That Rise with National Income Act as an Automatic

question 41

Multiple Choice

Net tax revenues that rise with national income act as an automatic stabilizer by the marginal propensity to spend and thereby causing the simple multiplier to .

• A)decreasing; decrease
• B)increasing; decrease
• C)decreasing; increase
• D)increasing; increase
• E)decreasing; equal one

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Definitions:

T-statistic

A type of statistic used to estimate the significance of a parameter derived from a sample data set.

Statistically Significant

A determination that the observed effects or differences in data are unlikely to have occurred by chance, according to a pre-determined threshold.

Null Hypothesis

A statement in statistical analysis that proposes there is no significant difference or relationship between specified populations, or no effect of a treatment.

Region of Rejection

The range of values in a statistical test that leads to the rejection of the null hypothesis, indicating a statistically significant result.