n a model with demand-determined output and a constant price level, a decrease in the net tax rate causes _____ in autonomous spending and a _____ in the simple multiplier. a. No change; fall. b. A fall; fall. c. A rise; rise. d. No change; rise. e. A rise; fall
n a model with demand-determined output and a constant price level, a decrease in the net tax rate causes _____ in autonomous spending and a _____ in the simple multiplier. a. No change; fall. b. A fall; fall. c. A rise; rise. d. No change; rise. e. A rise; fall
Chapter11: Fiscal Policy
Section: Chapter Questions
Problem 1.4P
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In a model with demand-determined output and a constant price level, a decrease in the net tax rate causes _____ in autonomous spending and a _____ in the simple multiplier.
a.
No change; fall.
b.
A fall; fall.
c.
A rise; rise.
d.
No change; rise.
e.
A rise; fall
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