Which of the Following Is a Correct Statement of the Impacts

question 111

Multiple Choice

Which of the following is a correct statement of the impacts of a lump-sum tax?

• A) Disposable income will increase by the amount of the tax and consumption at each level of GDP will decline by the amount of the tax multiplied by the MPC.
• B) Disposable income will decline by the amount of the tax and consumption at each level of GDP will decline by the amount of the tax multiplied by the multiplier.
• C) Disposable income will decline by the amount of the tax and consumption at each level of GDP will also decline by the amount of the tax.
• D) Disposable income will decline by the amount of the tax and consumption at each level of GDP will decline by the amount of the tax multiplied by the MPC.

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Definitions:

Noncommittal Subject Line

An email subject line designed to be vague or not reveal the main purpose of the message.

Expectancy Theory

A motivational theory suggesting that people are motivated to act in certain ways because they expect the outcome of their actions to achieve a desired goal.

Positive Incentives

Incentives designed to encourage and reinforce desirable behaviors by providing rewards or benefits.

Self-Interest Theory

A theory suggesting that individuals' decisions are motivated by personal gain or benefits, emphasizing the role of self-benefit in human behavior.