The Simple Tax Multiplier Must Always Be Smaller Than the Simple

question 15

True/False

The simple tax multiplier must always be smaller than the simple spending multiplier,regardless of the value of the MPC.

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Definitions:

Natural Selection

A process by which organisms that are better adapted to their environment tend to survive and produce more offspring.

Synthetic Stimulant

A man-made substance designed to increase alertness, attention, and energy, often used as drugs.

Mild Hallucinogen

A substance that induces subtle alterations in perception, mood, and thought, without causing intense hallucinations or loss of reality.

Dopamine

A neurotransmitter in the brain that plays key roles in regulating mood, motivation, pleasure, and motor control.