What Will Be the Effect on the Multiplier of a Decrease

question 4

Multiple Choice

What will be the effect on the multiplier of a decrease in autonomous taxes?

• A)It will decrease.
• B)It will increase.
• C)There will be no effect on the multiplier.
• D)Cannot be determined without more information.

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Definitions:

Implied

Suggested or understood without being directly expressed or explicitly stated.

Unlimited Liability

The legal obligation of business owners to bear any and all debts of the business with their personal assets.

Personal Assets

Individual possessions or properties, including money, that belong to a person, not related to business assets.

Sole Proprietor

A type of business entity owned and operated by a single individual, where there is no legal distinction between the owner and the business.