One Way to Describe the Tax Multiplier Is That It

question 100

Multiple Choice

One way to describe the tax multiplier is that it equals the

• A) the spending multiplier
• B) the negative of the spending multiplier minus1.0
• C) the GNP gap minus the GDP gap
• D) the reciprocal of the marginal propensity to consume
• E) the best estimate of the optimal tax rate

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Definitions:

Theocratic

Pertaining to a form of government or a society where religious leaders control political power, often based on the belief that their authority is divinely guided.

Anarchic

Characterized by a state of disorder and absence of governmental authority or a structured society.

Extremism

Holding extreme political or religious views.

Socialism

An economic and political system where the means of production are owned and controlled by the state or public, aiming for equal distribution of wealth and resources.