The Reason That the Multiplier Is Smaller If There Are

question 23

Multiple Choice

The reason that the multiplier is smaller if there are variable taxes is that

• A)taxes add to government spending, which increases income.
• B)people get angry about taxes and decide to work less.
• C)tax increases shift the expenditure line upward.
• D)part of an increase in income is taken away in taxes.

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Definitions:

Hydrophilic

Hydrophilic substances are those that have an affinity for water, meaning they can dissolve in, absorb, or be wetted by water.

Polar

Relating to the extreme northern or southern regions of the Earth, characterized by extreme cold and ice-covered landscapes.

Hydrophobic Molecules

Molecules that repel water, typically nonpolar substances that do not mix with water.

Water

A transparent, tasteless, odorless, and nearly colorless chemical substance that is the main constituent of Earth's streams, lakes, and oceans, and the fluids of most living organisms.