Multiple Choice
A tax-cut will have a greater effect on equilibrium GDP if the:
A) Marginal propensity to consume is smaller
B) Marginal propensity to save is smaller
C) Marginal propensity to save is larger
D) Average propensity to consume is larger
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q9: When a private closed economy is at
Q90: Planned investment is $20 billion and saving
Q92: The difference between the investment demand curve
Q93: The table shows a consumption schedule. All
Q94: In the aggregate expenditure model, which of
Q97: One of the most important views expressed
Q99: All figures in the table below are
Q100: An economy characterized by high unemployment is
Q120: A downward-sloping investment demand curve and a
Q184: Recently, the level of GDP has declined