If Taxes Depend on Income, Then the Magnitude of the Government

question 307

Multiple Choice

If taxes depend on income, then the magnitude of the government spending multiplier ________ it would be if taxes were a lump-sum amount.

• A) could be either larger than or smaller than
• B) is larger than
• C) is equal to what
• D) is smaller than

---

Definitions:

Leading Cause

The primary factor or condition that is most responsible for a particular outcome or effect, such as death or disease.

Death

The cessation of all biological functions that sustain a living organism.

Cancer

A group of diseases involving abnormal cell growth with the potential to invade or spread to other parts of the body.

Behavioral Medicine

An interdisciplinary field that applies behavioral and medical knowledge to the treatment, management, and prevention of health problems.