Suppose That Real National Income (Y)is Equal to 800 and That

question 112

Multiple Choice

Suppose that real national income (Y) is equal to 800 and that government purchases are equal to 200.If the government's net tax revenues are equal to tY,where t is the net tax rate,then what is the value of t necessary for the government to have a balanced budget?

• A)20%
• B)25%
• C)30%
• D)35%
• E)40%

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Definitions:

Behavioral Intention

The likelihood that a person will perform a given behavior based on their attitude and beliefs towards that behavior.

Subjective Norms

Subjective Norms involve an individual's perception of social pressure to perform or avoid a particular behavior, heavily influenced by the beliefs about what important people in their life think they should do.

Perceived Behavioral Control

An individual's belief about how easy or difficult it will be to perform a particular behavior.

Attitude Accessibility

The ease with which an attitude can be remembered or brought to mind.