Should Autonomous Consumption Rise by One Dollar,the Effect of This

question 76

Multiple Choice

Should autonomous consumption rise by one dollar,the effect of this on equilibrium income can be offset if net taxes are

• A)raised by one dollar.
• B)lowered by one dollar.
• C)raised by c dollars.
• D)lowered by c dollars.
• E)raised by (1/c)dollars.

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Definitions:

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A broad range of facts, concepts, and information about various subjects that are not specialized but are known by many people.

Recognition

A measure of memory in which the person need only identify items previously learned, as on a multiple-choice test.

Recall

A measure of memory in which the person must retrieve information learned earlier, as on a fill-in-the-blank test.

Memory

The faculty by which the mind stores and remembers information.