Multiple Choice
When we add a personal income tax to the macroeconomic model, the
A) multiplier becomes larger.
B) multiplier becomes smaller.
C) expenditures schedule shifts upward.
D) expenditures schedule becomes steeper.
Correct Answer:

Verified
Correct Answer:
Verified
Q40: Why does a tax change affect aggregate
Q163: An income tax reduces the size of
Q164: If income tax rates are increased in
Q165: Figure 11-1<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 11-1
Q166: If personal income tax rates are decreased
Q167: Transfer payments resemble<br>A)negative taxes.<br>B)positive taxes.<br>C)exports.<br>D)none of these.
Q169: If a state government reduces property taxes
Q171: Expansionary fiscal policy can cause a rise
Q172: In the determination of disposable income, transfer
Q173: Figure 11-2<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 11-2