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:

Medicare

In the United States, Medicare is a government-run health insurance scheme designed for individuals who are 65 years of age or older, along with certain younger individuals who have disabilities.

Employee Benefits Expense

Costs incurred by a company to provide benefits to its employees, such as health insurance, retirement plans, and sick leave.

Medical Care

The provision of services by healthcare professionals to maintain, improve, or manage the health of individuals.

Insurance Benefits

Payments or services provided by insurance companies to policyholders when certain events or circumstances occur, outlined in an insurance policy.