If Government Purchases Are Constant, Then an Increase in the Marginal

question 32

Multiple Choice

If government purchases are constant, then an increase in the marginal income tax rate, _w, leads to:

• A)a positive income effect.
• B)a negative income effect.
• C)no income effect.
• D)a marginal income effect.

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Definitions:

Gilgamesh

A legendary Sumerian king and the main character in the Epic of Gilgamesh, one of the earliest known works of literary fiction.

Ctesiphon Palace

The ruins of an ancient royal complex in modern Iraq, once a major center of the Sassanian Empire, notable for its distinctive arch and vault construction.

Iwan

In Islamic architecture, a vaulted rectangular recess opening onto a courtyard.

Apadana

The term refers to an audience hall in ancient Persian palaces, notably the great hall of Darius and Xerxes at Persepolis.