Let Taxes Be Fixed and Equal to T, Consumption Given

question 30

Multiple Choice

Let taxes be fixed and equal to T, consumption given by
C = a + bY - T) , investment and government spending exogenous, and net exports described by X = g - mY. The multiplier for T would then be

• A) 1/[1 - 1 - t)b + m].
• B) b/[1 - 1 - t)b + m].
• C) b/1 - b + m).
• D) -1/[1 - 1 - t)b + m].
• E) -b/1 - b + m).

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Definitions:

Concrete Rewards

Tangible incentives or prizes given in recognition of achievements or desired behaviors.

Avoid Punishment

A behavior modification strategy where actions are taken to escape or evade from adverse stimuli.

Abstract Reasoning Skills

The ability to analyze information, detect patterns and relationships, and solve problems on a complex level beyond what is concretely presented.

Piaget

Refers to Jean Piaget, a Swiss psychologist known for his work on cognitive development in children.