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The two factors that determine the size of the multiplier are the


A) marginal propensity to consume and the amount of overseas leakage.
B) amount of imports and the amount of exports.
C) amount of spending and the number of jobs.
D) unemployment rate and the inflation rate.

E) C) and D)
F) B) and D)

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President Obama signed legislation that pumped $787 million worth of federal spending and tax cuts into the economy.

A) True
B) False

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In 1955,the marginal tax rate for a married couple with a taxable income over $400,000 was


A) 35%.
B) 30%.
C) 85%.
D) 91%.

E) A) and D)
F) B) and C)

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What is the multiplier effect?

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If the government spends money to build ...

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__________ originally proposed the use of government spending to stimulate the economy in the 1930s during the Great Depression.


A) John Maynard Keynes
B) Franklin Delano Roosevelt
C) Albert Einstein
D) Ronald Reagan

E) A) and B)
F) C) and D)

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