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Refer to the Above Data

question 187

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  Refer to the above data.If a lump-sum tax (the same tax amount at each level of GDP)  of $40 is imposed in this economy, the marginal propensity to consume is: A) .8 before taxes and .6 after taxes. B) .8 both before and after taxes. C) .6 before taxes and .8 after taxes. D) .8 before taxes and .4 after taxes. Refer to the above data.If a lump-sum tax (the same tax amount at each level of GDP) of $40 is imposed in this economy, the marginal propensity to consume is:


Definitions:

Orbicularis Oculi

A muscle around the eye socket that enables the eye to close and squint.

Masseter

A major muscle of mastication involved in jaw closure, located at the side of the jaw.

Plantar Flexes

The movement decreasing the angle between the dorsum of the foot and the leg, for example, standing on tiptoes.

Fibularis Brevis

A muscle of the lower leg that assists in plantar flexing and everting the foot.

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