Multiple Choice
Assume autonomous net taxes fall by $300; the MPC = 2/3.Net exports,planned investment,taxes,and government purchases are autonomous and remain fixed.The value of the spending multiplier equals
A) 1
B) 10
C) 3
D) 0
E) an indeterminate value
Correct Answer:
Verified
Correct Answer:
Verified
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;
Q26: An autonomous net tax will<br>A)decrease disposable income
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
Q32: Assume that initially G is $100 and