A Change in Tax Rates

question 215

Multiple Choice

A change in tax rates

• A)has a less complicated effect on GDP than does a tax cut of a fixed amount.
• B)has a larger multiplier effect the smaller the tax rate.
• C)will not affect disposable income.
• D)will not affect the size of the multiplier.

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Definitions:

Metaphysically Important

Pertaining to matters beyond the physical world that are significant in the study or belief in the fundamental nature of reality and being.

Transitional

Pertaining to or involving a phase of change or transformation from one state, condition, or period to another.

Secular

Related to or concerned with worldly rather than spiritual matters; not religious or sacred.

Spiritual

Pertaining to or affecting the human spirit or soul as opposed to material or physical things.