In Our Simple Macro Model with Government,which Statement Correctly Describes

question 53

Multiple Choice

In our simple macro model with government,which statement correctly describes the following equation: = (0.75) Y?

• A)If disposable income increases by $0.75,then national income increases by $1.00 and total tax revenue rises by $0.75.
• B)Net tax revenue is equal to 75% of national income.
• C)If national income increases by $1.00,then disposable income increases by $0.75 and net tax revenue increases by $0.25.
• D)Net tax revenue is equal to 25% of disposable income.
• E)If national income increases by $1.00,then disposable income increases by $0.25 and net tax revenue increases by $0.75.

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Definitions:

Neurotransmitter

A brain chemical that carries information from the axon of a sending neuron to the dendrites of a receiving neuron.

Corpus Callosum

A wide band of nerve fibers connecting the left and right hemispheres of the brain, facilitating interhemispheric communication.

Cognition Deterioration

The decline in cognitive functions such as memory, problem-solving, and attention.

Physical Disability

A limitation on a person's physical functioning, mobility, dexterity or stamina.