Suppose the Multiplier Is 4

question 114

Multiple Choice

Suppose the multiplier is 4.ceteris paribus,a change in autonomous spending will change total spending more if the aggregate supply curve is __________ than if it is __________.

• A)horizontal;upward sloping
• B)upward sloping;horizontal
• C)upward sloping;downward sloping
• D)downward sloping;upward sloping
• E)There is not enough information to answer the question.

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Definitions:

Excise Tax

A specific tax levied on the sale of a particular product or service, often imposed to discourage the consumption of that good.

Tax

A financial charge or levy imposed by a government on individuals or entities to fund public expenditure.

Excise Tax

A tax imposed on specific goods or services, such as tobacco, alcohol, and gasoline, typically intended to discourage their consumption or generate revenue.

Fried Twinkies

A dessert made by deep-frying a Twinkie, often resulting in a crispy exterior and soft, warm interior.