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.

---

Definitions:

Current Ratio

A financial ratio assessing a firm's capacity to fulfill its short-term liabilities using its current assets.

Short-Term Liquidity

An indicator of a company's ability to meet its short-term financial obligations using assets that can be quickly converted into cash.

Quick Ratio

A liquidity measure that indicates a company's ability to cover its short-term obligations with its most liquid assets.

Statement Of Cash Flows

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents.