问题


There is a single choice question about high school macroeconomics. Answer the question by replying A, B, C or D.
Question: The tax multiplier increases in magnitude when
A. the MPS increases.
B. the spending multiplier falls.
C. the MPC increases.
D. government spending increases.
Answer:

答案

模型 模型答案 正确答案
金声玉亮2.0

C. the MPC increases.

Explanation: The tax multiplier is the change in real GDP caused by a change in taxes. It is calculated as -MPC / (1 - MPC), where MPC is the marginal propensity to consume. When the MPC increases, the tax multiplier also increases in magnitude, meaning that a given change in taxes will have a larger effect on real GDP. This is because a higher MPC means that consumers will spend a larger portion of their disposable income, leading to a greater multiplier effect.

Note: MPS stands for marginal propensity to save, which is the fraction of an increase in income that is saved rather than spent. An increase in MPS would actually decrease the tax multiplier, not increase it.

The spending multiplier is a different concept, and a fall in the spending multiplier would not necessarily increase the tax multiplier.

Government spending is also a different concept, and an increase in government spending would not directly affect the tax multiplier.

Therefore, option C is the correct answer.
C
deepseekr1

The tax multiplier, given by the formula -MPC/(1-MPC), increases in magnitude when the marginal propensity to consume (MPC) rises. A higher MPC means a larger portion of additional income is spent, amplifying the multiplier effect.

- **Option A (MPS increases)**: Since MPS = 1 - MPC, a higher MPS implies a lower MPC, reducing the tax multiplier's magnitude.
- **Option B (spending multiplier falls)**: A smaller spending multiplier occurs when MPS increases (or MPC decreases), which also reduces the tax multiplier.
- **Option C (MPC increases)**: A higher MPC directly increases both the numerator and denominator of the tax multiplier formula, leading to a larger absolute value.
- **Option D (government spending increases)**: The tax multiplier depends on MPC/MPS, not the level of government spending, making this irrelevant.

**Answer: C**
C
gpto1 C C
GPT-4o C. the MPC increases. C
llama3.1-70B-Instruct

C
C
llama3.1-405B-Instruct

C
C
DeepSeek-Coder-V2 C C
Qwen2-72B-Instruct C. the MPC increases. C
baichuan4 A. the MPS increases. C
doubao C

The tax multiplier is related to the marginal propensity to consume (MPC). As the MPC increases, the tax multiplier also increases in magnitude. When the MPC is higher, a change in taxes has a larger impact on aggregate demand. The MPS (marginal propensity to save) is inversely related to the MPC. When the MPS increases, the MPC decreases and so does the tax multiplier. The spending multiplier and government spending are not directly related to the change in the magnitude of the tax multiplier.
C
minimax C. the MPC increases. C
kimi C. the MPC increases.

The tax multiplier is a measure of how much the total income in an economy changes when taxes are changed. It is influenced by the marginal propensity to consume (MPC), which is the proportion of an increase in income that is spent on goods and services. When the MPC increases, it means that a higher proportion of any additional income is being spent rather than saved. This increased spending can lead to more rounds of spending and income generation, thus increasing the magnitude of the tax multiplier.

The other options:
A. An increase in the marginal propensity to save (MPS) would actually decrease the tax multiplier because more income is being saved rather than spent.
B. The spending multiplier is not directly related to the tax multiplier.
D. An increase in government spending would increase the government spending multiplier, not the tax multiplier.
C
wenxinyiyan A

Explanation:
The tax multiplier measures the change in aggregate demand (or GDP) resulting from a change in taxes. The formula for the tax multiplier is: Tax Multiplier = -MPC / (1 - MPC), where MPC is the marginal propensity to consume (the proportion of additional income that is spent on consumption).

The marginal propensity to save (MPS) is the proportion of additional income that is saved. Since MPC + MPS = 1, an increase in MPS means a decrease in MPC.

Now, let's consider each option:

A. When the MPS increases, the MPC decreases. This decrease in the denominator (1 - MPC) of the tax multiplier formula makes the tax multiplier increase in magnitude (become more negative).

B. The spending multiplier and the tax multiplier are related but distinct concepts. A change in the spending multiplier does not directly affect the magnitude of the tax multiplier.

C. If the MPC increases, it would actually decrease the magnitude of the tax multiplier because the denominator (1 - MPC) would increase.

D. A change in government spending does not directly affect the magnitude of the tax multiplier. The tax multiplier specifically relates to changes in taxes and their impact on aggregate demand.
C
zhipu C. the MPC increases.

The tax multiplier is inversely related to the marginal propensity to consume (MPC). When the MPC increases, the tax multiplier increases in magnitude because a higher MPC means that consumers will spend a larger portion of any additional income, thereby amplifying the impact of tax changes on aggregate demand.
C
gpto1 C C