Multiple Choice
An increase in autonomous government purchases will have exactly the same effect as an equal increase in
A) autonomous net taxes
B) proportional income taxes
C) autonomous investment
D) autonomous saving
E) transfer payments
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q12: When we relax the assumption that net
Q13: If the government wants to increase equilibrium
Q14: If the MPC = 0.8 and both
Q15: If the government raised transfer payments by
Q16: If the MPC is equal to .75
Q17: The _ the proportional tax rate, t,
Q19: The balanced budget multiplier is always negative.
Q20: The effect of a new proportional income
Q21: In which of the following situations will
Q22: If the MPC equals 0.75 and the