The Effect of a Change in Net Taxes on the Quantity

question 22

Multiple Choice

The effect of a change in net taxes on the quantity of real GDP demanded equals the resulting shift in the consumption function times _____.

• A)the marginal propensity to consume
• B)the marginal propensity to save
• C)the autonomous net tax multiplier
• D)the simple spending multiplier
• E)the marginal tax rate

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Definitions:

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The exchange of goods and services across international borders or territories, influencing a country's economy.

Final Ratification

The formal confirmation or validation of an agreement, treaty, or constitution.

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A form of government in which citizens elect representatives to make decisions on their behalf, combining elements of democracy with a republic structure.

Executive Branch

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