The Tax Multiplier Is Negative Because an Increase in Taxes

question 219

Multiple Choice

The tax multiplier is negative because an increase in taxes _______ disposable income, which then _______consumption and GDP.

• A) increases; decreases
• B) decreases; decreases
• C) decreases; increases
• D) increases; increases

Comprehend the lexical hypothesis and its importance in personality psychology.

Interpret the results and implications of personality assessments.

Acknowledge the health impacts associated with high levels of certain Big Five traits.

Understand the relationship between Eysenck's factors and the Big Five traits.

---

Definitions:

Constitutionality

The quality of being in accordance with a political constitution, especially with respect to its legal and procedural validity.

Central Intelligence Agency

A civilian foreign intelligence service of the federal government of the United States, tasked with gathering, processing, and analyzing national security information.

White House

The official residence and workplace of the President of the United States, located at 1600 Pennsylvania Avenue NW in Washington, D.C.

Bin Laden

Osama bin Laden was the founder of al-Qaeda, the terrorist organization responsible for the September 11 attacks on the United States and numerous other acts of terrorism.