A Change in Tax Rates

question 215

Multiple Choice

A change in tax rates

• A)has a less complicated effect on GDP than does a tax cut of a fixed amount.
• B)has a larger multiplier effect the smaller the tax rate.
• C)will not affect disposable income.
• D)will not affect the size of the multiplier.

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Definitions:

Implied

Something suggested or understood without being directly expressed.

Traveler's Check

A preprinted, fixed-amount check designed to allow the person signing it to make an unconditional payment to someone else as a result of having paid the issuer for this privilege.

Payable On Demand

A term indicating that a payment is to be made immediately or whenever requested by the entitled party.

Countersignature

An additional signature required on a document or check to verify or approve its legitimacy, often used for security or authorization purposes.