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:

Decodes

The act of interpreting or making sense of a message, symbol, or piece of information, translating it into a comprehensible format.

Psychological Barrier

An emotional or mental obstacle that impedes a person's ability to communicate, perform, or achieve goals.

Effective Listening

This refers to the process of actively paying attention, understanding, remembering, evaluating, and responding to what is being said.

Fused Sentence

A grammatical error that occurs when two independent clauses are improperly joined without the use of punctuation or a coordinating conjunction.