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:

Entrepreneurial Self-efficacy

The belief in one's capability to organize and execute the courses of action required to manage prospective situations in entrepreneurship.

New Ventures

Refers to the start of new business activities, often associated with entrepreneurship and the creation of startups.

Belief

The acceptance that something exists or is true, especially without proof, forming the basis for actions and attitudes.

Stimulus

A circumstance or occurrence that triggers a reaction in a living being.