Multiple Choice
An autonomous net tax will
A) decrease disposable income by the same amount regardless of the level of real GDP
B) increase disposable income by the same amount regardless of the level of real GDP
C) decrease disposable income by more than it increases real GDP
D) increase disposable income by more than it increases real GDP
E) have no effect on disposable income at some levels of real GDP
Correct Answer:

Verified
Correct Answer:
Verified
Q21: Assume autonomous net taxes rise by $400;
Q22: Suppose both autonomous taxes and transfer payments
Q23: If autonomous net taxes decline by $40
Q24: If government purchases and autonomous net taxes
Q25: Assume autonomous net taxes rise by $400;
Q27: Assume autonomous net taxes fall by $300;
Q28: Which of the following will not increase
Q29: If the multiplier for autonomous government purchases
Q30: An increase in net taxes<br>A)raises aggregate expenditure
Q31: Exhibit 11-5 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4914/.jpg" alt="Exhibit 11-5