Answer: It decreases the government purchases multiplier.
Explanation: The Government purchases multiplier is the factor by which the income in an economy increases due to government spending. For example if the government introduces $2 miilion into the economy through projects, the total effect on the economy is more than $2 million, it is multiplied through the contractors, their employees, the businesses the employees patronize and so on.
However, an increase in tax rate has the opposite effect on income, it reduces both the Marginal Propensity to Save and Marginal Propensity to consume. An increase in tax rate will reduce the multiplier.
A tax rate increase is a contractionary measure, that it, it reduces the aggregate demand while increased government spending is an expansionary measure, it increases the aggregate demand.
Hello, i believe the correct answer is D) All of the above
Answer:
d. guide a child's understanding of the integration of functions.
Explanation:
hopes this helps
The term applies to states in which supreme authority is vested in the monarch, an individual ruler who functions as the head of state and who achieves his or her position through heredity. Most monarchies allow only male succession, usually from father to son.
