A Decrease in Taxes Will Have a Larger Effect on Equilibrium

question 124

True/False

A decrease in taxes will have a larger effect on equilibrium GDP if the marginal propensity to consume is smaller.

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Definitions:

Self-efficacy

An individual's belief in their own ability to complete tasks and achieve goals.

Intrinsic Motivation

A desire to perform an activity because of the value or pleasure associated with that activity, rather than for an apparent external goal or purpose.

Drive

An internal motivational state that compels organisms to act or behave in specific ways to satisfy needs.

Extrinsic Motivation

Motivation that is driven by external rewards such as money, fame, grades, or praise.