A Change in Tax Rates

question 144

Multiple Choice

A change in tax rates

• A) has a less complicated effect on GDP than a tax cut of a fixed amount.
• B) has a larger multiplier effect the smaller the tax rate.
• C) will not affect disposable income.
• D) will not affect the size of the multiplier.

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Definitions:

Type A

A behavior pattern characterized by competitiveness, urgency, aggression, and an heightened stress response.

Stressor

A stressor is any event or situation that triggers physical or psychological stress.

Environmental Event

An occurrence within the environment that can influence the behavior or psychological state of an individual or group.

Physical Tension

The state of being stretched tight or having muscles that are strained from stress or anxiety.