If the tax multiplier is 40 what is the marginal propensity to consume a 066 b

If the tax multiplier is 40 what is the marginal

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76.If the tax multiplier is -4.0, what is the marginal propensity to consume?a.0.66b.0.75c.0.50d.0.80e.0.25ANS: DPTS:1DIF:2LOC: EquilibriumTOP:The Special Case of the Tax Multiplier77.Suppose the marginal propensity to consume is 0.75. If government purchases increase by $100 billion and the extra expenditure is financed with a net tax of $100 billion, by how much will output change?78.If the marginal propensity to consume is 0.75 and autonomous consumption spending will decrease by $30 billion, by how much would net taxes need to decrease in order to have no change in output? (Ignore any timing issues.)79.Ricardian equivalence refers to
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80.The major reasons why economists have grown increasingly skeptical about countercyclical fiscal policy area.irreversibility, forward looking behavior, and the reaction of the Federal Reserve.b.irreversibility, forward looking behavior, and the negative effects of imports.c.timing problems, irreversibility, and forward looking behavior, d.timing problems, irreversibility, and the reaction of the Federal Reserve.e.timing problems, irreversibility, forward looking behavior, and the reaction of the Federal Reserve.ANS:EPTS:1DIF:2LOC:Monetary and fiscal policyTOP:Problems with Countercyclical Fiscal Policy81.Ricardian equivalence implies a tax multiplier of zero.82.To be effective, countercyclical fiscal policy must be temporary.83.Assume that there is a proposed tax cut by the U.S. House of Representatives. A problem is
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