Search & Filtering
The introduction of taxes to the Keynesian model...
O a. Increases investment spending at each positive level of income.
O b. Cause the slope of the consumption curve to become steeper.
O d. Causes the consumption function to shift parallel upwards.
O e. Causes the consumption function to shift parallel downwards.
O c. Flattens the consumption curve.
Suppose an endogenous tax variable is introduced in our Keynesian model, what will happen to the size of the multiplier?
a. It will remain the same.
O d. The size of the multiplier and the tax rate are not related.
c. It will decrease.
O b. It will increase.
Assume that country A relies more heavily on imports than country B, while other macroeconomic conditions are the same. If there is a positive relationship between domestic economic activity and imports, then the multiplier of country A will be
O c. as large as country B's.
O b. smaller than country B's.
a. larger than country B^ prime s .
O d. uncertain.
Given the following information for a small open economy: C=R1 000+0,2Yd The government spending is R300, The proportional tax rate is 28%, Exports are R100, Z = R * 2O + 0, 1Y and Investment is R200.
Calculate the multiplier and equilibrium level of income.
O d. 1,60 and R2 528 respectively
O c. 1,85 and R2 923 respectively
O b. 1,32 and R2 086 respectively
O a. 1,05 and R1 659 respectively
Use the following information to answer question:
Autonomous ption = 1200
Government spending y = 1500
Y=5 000
c = 0.80
t=0\%
Total savings is...
a. -200
O b. 1000
O C. -1 200
O d. 200
Government ling=R500
rts: R300
Autonomous consumption =R200
Autonomous imports =0
Investment expenditure re=R100
Marginal propensity to consume =0,6
Marginal propensity to import =0,1
Proportional tax rate = 0, 25
Aggregate autonomous expenditure (A) is equal to
O a. R200.
O b. R300.
O c. R500.
O d. R800.
e. R1 100.
Use the following information to solve questions.
Total income =40 000
Autonomous consumption =10 000
c = 0.7
Tax rate =0.35
Disposable income is...
O a. 11 600
O b. 26 000
O c. 14 000
O d. 18 200
Given a consumption function C=1 000+0,4Y with a proportional income tax rate of 40%, what is the multiplier? Round off your answer to two digits after the decimal.
O d. 2,78
O c. 2,50
O b. 1,70
a. 1,32
Which statement is correct?
O a. Government cannot increase the equilibrium level of income by increasing government spending.
O b. Government can increase the equilibrium level of income by increasing taxes.
O c. Government can decrease the equilibrium level of income by decreasing taxes.
O d. Government can reduce the equilibrium level of income by increasing government spending.
O e. Government can reduce the equilibrium level of income by decreasing government spending.
The introduction of taxes to the Keynesian model...
O a. Increases investment spending at each positive level of income.
O b. Cause the slope of the consumption curve to become steeper.
O e. Causes the consumption function to shift parallel downwards.
O d. Causes the consumption function to shift parallel upwards.
O c. Flattens the consumption curve.
#340153 on Dec 2023