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:

Timing

The selection of the most opportune moment to initiate or execute an action, which can greatly affect the success or failure of an endeavor.

Mineral Rights

The legal rights to explore for and produce the minerals underneath a piece of land.

Easement

A right granted to a person or entity to use the land of another for a specific purpose, such as access to another property.

Reservation

An arrangement to secure a place or service in advance, such as a hotel room or a seat on a flight.