Using the Keynesian Model,the Effect of an Increase in the Effective

question 40

Multiple Choice

Using the Keynesian model,the effect of an increase in the effective tax rate on capital would be to cause ________ in the real interest rate and ________ in output in the short run.

• A)a decrease; a decrease
• B)a decrease; no change
• C)an increase; an increase
• D)no change; a decrease

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Definitions:

Cumulative Quantity Discount

A pricing strategy where the price per unit decreases as the total quantity purchased by a customer over time increases.

Quantity Discount

A pricing strategy that offers a reduced price per unit when products are purchased in larger quantities, encouraging bulk buying.

Warm Delights

Typically refers to products or services designed to provide comfort, satisfaction, or a sense of well-being to consumers.

Trade (Functional)

The activities and processes involved in the distribution of goods and services, facilitating the movement from producer to consumer while adding value through functions like transportation and warehousing.