The Multiplier Will Be Greater, Other Things Being Equal

question 4

Multiple Choice

The multiplier will be greater, other things being equal:

• A)the smaller the fraction of each dollar earned that goes to taxes.
• B)the smaller the fraction of each dollar of disposable income that is spent on imports.
• C)the smaller the fraction of each dollar of disposable income that goes to saving.
• D)All of these answers are true.

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Definitions:

Principle of Comity

A doctrine in international law where countries mutually recognize and enforce each other's laws and judicial decisions out of respect, rather than obligation.

Act of State Doctrine

A principle in international law that allows a country to disregard foreign judgments that violate its own nation's sovereignty.

Space Resources

Natural materials found outside of Earth's atmosphere that can be extracted and utilized, such as water ice on the moon or minerals on asteroids.

Antidumping Duty

A tariff imposed by a government on foreign imports believed to be priced below fair market value to protect domestic industries.