This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Assume that taxes depend on income and the MPCis 0.8 and tis 0.4. An increase in taxes of $10 ... (Read 87 times)

tfester

  • Hero Member
  • *****
  • Posts: 534
on: Apr 19, 2019

Question 1

If taxes depend on income and the 
MPC is 0.8 and 
t is 0.4, the tax multiplier is


◦ -1.54.
◦ -1.92.
◦ -2.5.
◦ -2.7.

Question 2

Assume that taxes depend on income and the 
MPC is 0.8 and 
t is 0.4. An increase in taxes of $10 billion will decrease equilibrium income by


◦ $15.4 billion.
◦ $19.2 billion.
◦ $25 billion.
◦ $27 billion.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by tfester on Apr 19, 2019

Athena23

  • Sr. Member
  • ****
  • Posts: 305
Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 25% of students answer this correctly


tfester

  • Member
  • Posts: 534
Reply 2 on: Apr 19, 2019
Excellent

31809pancho

  • Member
  • Posts: 317
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Of the estimated 2 million heroin users in the United States, 600,000–800,000 are considered hardcore addicts. Heroin addiction is considered to be one of the hardest addictions to recover from.

Did you know?

Street names for barbiturates include reds, red devils, yellow jackets, blue heavens, Christmas trees, and rainbows. They are commonly referred to as downers.

Did you know?

Women are two-thirds more likely than men to develop irritable bowel syndrome. This may be attributable to hormonal changes related to their menstrual cycles.

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Did you know?

About 600,000 particles of skin are shed every hour by each human. If you live to age 70 years, you have shed 105 pounds of dead skin.

Mark Twain supplemented his income as a writer by giving humorous lectures. Mark Twain supplemented his income as a writer by giving humorous lectures.
Global Stratification: Income of the World's Nations Global Stratification: Income of the World's Nations
Race-Ethnicity and Income Extremes Race-Ethnicity and Income Extremes
IPCC Temperature Increase Predictions Relative to 1986-2005 IPCC Temperature Increase Predictions Relative to 1986-2005
Relationship Between Income per Capita and Population Growth Relationship Between Income per Capita and Population Growth
Philip wants to supplement his pension by $415 per month with income from his investments. His ... Philip wants to supplement his pension by $415 per month with income from his investments. His ...
Video: Introduction to Epilepsy

For a complete list of videos, visit our video library