The Above Figure Shows the Saving Schedules for Economies 1

question 32

Multiple Choice

The above figure shows the saving schedules for economies 1, 2, 3, and 4.Which economy has the largest multiplier?

• A)1
• B)2
• C)3

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Definitions:

Social Security Taxes

Taxes collected by the government to fund the Social Security program, which provides retirement, disability, and survivorship benefits.

Medicare Taxes

Taxes deducted from employee paychecks and also matched by employers to fund the Medicare program, a federal health insurance program for individuals who are 65 and older and for some younger people with disabilities.

Accrued Salaries

Salaries that have been earned but not yet paid to employees by the end of an accounting period.

Unemployment Compensation Tax

A tax that employers pay to the government, which is used to fund unemployment benefits for workers who have lost their jobs.