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:

Microsystem

In ecological systems theory, the immediate environment in which individuals interact face-to-face, such as family, school, and peer groups.

Observational Learning

A learning process through watching the actions of others and then imitating or modeling those actions.

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, emphasizing the effects of behavior on future behavior.

Negative Reinforcement

A process in behavioral psychology where the removal of an unpleasant stimulus strengthens a behavior.