A Given Increase in Taxes Shifts the IS Curve More

question 99

Multiple Choice

A given increase in taxes shifts the IS curve more to the left the:

• A) larger the marginal propensity to consume.
• B) smaller the marginal propensity to consume.
• C) larger the government spending.
• D) smaller the government spending.

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Definitions:

University Of Nevada

A public research university located in the state of Nevada, known for its programs in numerous fields of study.

Modified AGI

Adjusted Gross Income (AGI) altered by adding back certain deductions, often used to determine eligibility for specific tax benefits.

Joint Tax Return

A tax filing status for married couples who choose to file one tax return jointly, combining their incomes and deductions.

Qualifying Child

A dependent who meets specific IRS criteria regarding relationship, age, residence, and support, allowing taxpayers to claim certain credits and deductions.