Assuming That There Are NO Income Taxes,if Both Autonomous Taxes,and

question 71

Multiple Choice

Assuming that there are NO income taxes,if both autonomous taxes,and government expenditures were to rise by $100 million,we would expect equilibrium GDP to

• A)rise by $100 million.
• B)rise,but by a multiple of $100 million.
• C)rise by less than $100 million.
• D)remain unaffected because leakages have changed by the same amount.

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Definitions:

Profitability Index

A ratio or index that measures the relative profitability of an investment, calculated as the present value of future cash flows divided by the initial investment cost.

Investment Project D

A specific project undertaking related to investment, often involving substantial capital expenditure and financial planning.

Profitability Index

A financial metric used to evaluate the profitability of an investment, calculated as the present value of future cash flows divided by the initial investment cost.

Incremental Annual Revenues

The additional revenue generated from a specific action or decision, measured on an annual basis.