The Simple Spending Multiplier Is Like

question 49

Multiple Choice

The simple spending multiplier is like

• A)having a bird in the hand rather than two in the bush
• B)two wrongs making a right
• C)the spreading of ripples from a stone thrown in a pond
• D)getting too much of a good thing
• E)having too many chefs in the kitchen

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Definitions:

Tax on Sellers

A tax on sellers is a levy imposed by the government on sellers of certain goods and services, which often leads to a shift in supply curve and price adjustments.

Increases Supply

A rise in the quantity of a good or service that producers are willing and able to sell at a given price, often due to reductions in production costs or improvements in technology.

Tax on Sellers

A financial charge imposed by the government on sellers, which can shift the supply curve upward and affect market equilibrium.

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity of the good that suppliers are willing to sell.