Question: How does a change in the personal tax rate affect the multiplier? How does a change in the size of the multiplier affect the economy?

How does a change in the personal tax rate affect the multiplier? How does a change in the size of the multiplier affect the economy?

Anincrease in the personal tax rate ....... the size of the multiplier, which means that any given change in autonomous spending has a relatively .....

effect on real GDP.

1. increases/decreases

2. smaller/ larger

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

How does a change in the personal tax rate affect the multiplier? How does a change in the size of the multiplier affect the economy?

Hi I need answers immediately. Attached is a file. I need the detailed solutions (no excel, can be typed or handwritten) to the long answer portions ONLY. Please read instructions for rounding rules....

HI! can you please answer the Long answer question #1, part h), on the attached file! Thank you very much UNIVERSITY OF MANITOBA Faculty of Management Department of Accounting and Finance Professors:...

I need verification if my answers are right see page 14 of sample final and attached picture. Did I do it right or is the hedging options column wrong? UNIVERSITY OF MANITOBA Faculty of Management...

Attached is a file. See page 14. I need answer for part d). Please read instructions for rounding rules. UNIVERSITY OF MANITOBA Faculty of Management Department of Accounting and Finance Professors:...

Attached is a file. See page 14. I need answer for part e). Please read instructions for rounding rules. UNIVERSITY OF MANITOBA Faculty of Management Department of Accounting and Finance Professors:...

Assume that n is the number of shares of record at time 0 and that rn is the number of new shares sold at time 1 at a price of PI. Equation (11-1) then can be rewritten as 'Merbn H. Miller and Franco...

An increase in the marginal tax rate: a)increases the multiplier b)decreases the multiplier but cannot make it negative c)has no effect on the multiplier d)can either increase or decrease the...

please provide some explanation with the calculations. thank you! there are only 3 questions at the end! all the indformation are included. Please refer the following articles and answer questions on...

please answer 8-10 if possible trying to understand the difference between tbr mm63 capital model with taxes the miller model and the ebit/capital cost model Aspeon Sparkling Water, Inc., botlles...

Y d 3. (40 points) A current I flows lengthwise in a very long, thin conducting sheet of width w, as shown in figure below. Assuming that the current flows into the paper, determine the magnetic flux...

Question 4 Wizzjet Ltd Wizzjet Ltd is a small company operating a single airplane for short journeys between UK city airports. Wizzjet Ltd purchased this key asset on 1 January 2016. Details of the...

4. Most computer languages include a function that can be used to generate random numbers. In Excel, the RAND function can be used to generate random numbers between 0 and 1. If we let x denote a...

Consider the data below: Month Demand Jan 189 Feb 294 Mar 234 Apr 174 May 264 Jun 249 Jul 249 Aug 279 Sep 264 Oct 264 Nov 294 The forecast for the month of November was higher than the actual demand...

Self-confidence

The number of people commenting on the statement

3. Choose a social incident in your local area. (a) List three points that you believe are the cause of the social incident and develop a model that shows a linear relationship. (b) What is the...