An Increase in Taxes Will Have a Greater Effect on the Equilibrium

question 3

Multiple Choice

An increase in taxes will have a greater effect on the equilibrium GDP

• A)if the tax revenues are redistributed through transfer payments.
• B)the larger the MPS.
• C)the smaller the MPC.
• D)the larger the MPC.

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Definitions:

Indirect Suggestion

A technique used in sales and communication wherein an idea or preference is implied or suggested rather than explicitly stated, influencing the receiver's thoughts or actions subconsciously.

Dramatics

The art of producing and performing dramatic works; also refers to actions or behaviors that are exaggerated or emotional.

Powerful Proof Technique

A persuasive approach or method that strongly validates a claim or argument, enhancing its credibility.