# Macroeconomics - multiplier

Document Sample

```					  “An Online Tutoring and Assignment Help Company Which Has
Helped Thousands of Students to Excel in Their Studies”

CLASSOF1         [MACROECONOMICS - MULTIPLIER]

Document Description:
Multiple choice questions related to multiplier, automatic stabilizer, laffer curve.
Sub: Economics

Question:

ClassOf1 provides expert guidance to College, Graduate, and High school students on homework and assignment problems
in Math, Sciences, Finance, Marketing, Statistics, Economics, Engineering, and many other subjects.

1) When households' marginal propensity to consume (MPC) increases, the size of the spending
multiplier:

1. decreases.

2. remains unchanged.

3. also increases.

4. reacts unpredictably.

2) According to the Laffer Curve, when the tax rate is 100 percent, tax revenue will be:

1. at the maximum value.

2. greater than it would be at a 50 percent tax rate.

3. the same as it would be at a 20 percent tax rate.

4. 0.

5. the same as it would be at a 50 percent tax rate.

```
DOCUMENT INFO
Shared By:
Categories:
Stats:
 views: 225 posted: 3/26/2010 language: English pages: 6
Description: Multiple choice questions related to multiplier, automatic stabilizer, laffer curve
BUY THIS DOCUMENT NOW PRICE: \$20 100% MONEY BACK GUARANTEED
PARTNER
Classof1 is a supplemental education company providing comprehensive online tutoring, homework guidance, and e-learning courseware development services to the school, college, and university student communities. As a part of its endeavor to help students around the world to excel in their studies, Classof1 has built a repository of self-study guides with step-by-step solutions and lucid explanations. These guides have been created and whetted by expert tutors with several years of experience in education. Apart from Docstoc.com, these self-help guides are also available at Classof1’s Solution Library (http://classof1.com/solution-library). Please visit www.classof1.com for further information.