The Effect of a Change in Net Taxes on the Quantity

question 22

Multiple Choice

The effect of a change in net taxes on the quantity of real GDP demanded equals the resulting shift in the consumption function times _____.

• A)the marginal propensity to consume
• B)the marginal propensity to save
• C)the autonomous net tax multiplier
• D)the simple spending multiplier
• E)the marginal tax rate

---

Definitions:

Mood

Mood refers to a temporary state of emotion or feeling that can influence an individual's perception and interactions with the world.

Disinhibition Dimension

A personality trait characterized by impulsivity, risk-taking behavior, and a lack of restraint or self-control.

Impulsivity

Difficulty controlling behaviors; acting without thinking first.

Negative Characteristic

A trait or quality that is considered undesirable or harmful.