Suppose the President Is Successful in Passing a $5 Billion

question 57

Multiple Choice

Suppose the president is successful in passing a $5 billion tax increase.Assume that taxes are fixed,the economy is closed,and the marginal propensity to consume is 0.75.What happens to equilibrium GDP?

• A)There is a $20 billion increase in equilibrium GDP.
• B)There is a $20 billion decrease in equilibrium GDP.
• C)There is a $15 billion increase in equilibrium GDP.
• D)There is a $15 billion decrease in equilibrium GDP.

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Definitions:

Actual Cause

The determination that the defendant's breach of duty resulted directly in the plaintiff's injury.

Duty Of Care

Duty of care is a legal obligation imposed on individuals requiring that they adhere to a standard of reasonable care while performing any acts that could foreseeably harm others.

Breach Of Duty

Failure to fulfill a legal or ethical obligation, often leading to liability.

Punitive Damages

Payment allocated to a harmed individual which surpasses the amount needed to offset damages, serving the purpose of reprimanding the responsible party.