The Effect of a Change in Net Taxes on the Quantity

question 22

Multiple Choice

The effect of a change in net taxes on the quantity of real GDP demanded equals the resulting shift in the consumption function times _____.

• A)the marginal propensity to consume
• B)the marginal propensity to save
• C)the autonomous net tax multiplier
• D)the simple spending multiplier
• E)the marginal tax rate

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Definitions:

Emotional Mind

A powerful, impulsive, sometimes illogical awareness; an ability to perceive emotions.

Assertiveness

Standing up for your rights without threatening the self-esteem of the other person.

Aggressiveness

Hurting others and putting them on the defensive.

Spatial Intelligence

The ability to comprehend, reason, and remember the spatial relations among objects or space.