Question:

Can anyone please explain the answer to this?

by  |  earlier

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gdp :

100

200

300

400

500

Consumption:

140

200

260

320

380

Refer to the above data. A 10 percent proportional tax on income would:

A. affect neither the size of the multiplier nor the stability of the economy.

B. increase the size of the multiplier and make the economy more stable.

C. increase the size of the multiplier and make the economy less stable.

D. reduce the size of the multiplier and make the economy more stable.

WHY IS IT 'A' ?????????????????????????

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1 ANSWERS


  1. Fate....

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