In the IS-LM Analysis, the Increase in Income Resulting from a Tax

question 46

Multiple Choice

In the IS-LM analysis, the increase in income resulting from a tax cut is usually ______ the increase in income resulting from an equal rise in government spending.

• A) less than
• B) greater than
• C) equal to
• D) sometimes less and sometimes greater than

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Definitions:

Blue Price

This term does not have a widely recognized definition and could refer to specific market jargon or a particular pricing strategy.

Ambrosia

In Greek mythology, ambrosia is considered the food or drink of the gods, often depicted as conferring longevity or immortality upon whoever consumed it.

Fixed Coefficients

A term used in production and economics to describe technologies where inputs are used in strict fixed proportions to produce an output.

Production Possibility Set

A graph or curve depicting all maximum output possibilities for two or more goods, given a set of inputs.