Multiple Choice
A decrease in autonomous net taxes
A) increases GDP as much as an equal decrease in government purchases
B) increases GDP less than an equal increase in government purchases
C) decreases GDP more than an equal decrease in government purchases
D) changes GDP in an unpredictable manner
E) has no effect on GDP
Correct Answer:
Verified
Correct Answer:
Verified
Q48: If the MPC equals 0.75 and G
Q49: A tax is considered to be autonomous
Q50: If the MPC = 0.8,then the simple
Q51: A $100 billion increase in government purchases
Q52: Assume autonomous net taxes fall by $300;
Q52: Equal increases in government purchases and in
Q55: If the MPC is 0.75,a decrease in
Q56: Exhibit 11-5 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4914/.jpg" alt="Exhibit 11-5
Q57: When government purchases increase,the spending multiplier tells
Q58: Exhibit 11-5 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4914/.jpg" alt="Exhibit 11-5