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Taxes are reduced by $70 billion and income increases by $280 billion. The value of the tax multiplier is

lurielbank

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Taxes are reduced by $70 billion and income increases by $280 billion. The value of the tax multiplier is

Question 1.

If the government spending multiplier is 5 and government spending decreases by $200 billion, output will ________ by $________ billion.

▸ increase; 200

▸ decrease; 1,000

▸ decrease; 40

▸ decrease; 200

Question 2.

Taxes are reduced by $70 billion and income increases by $280 billion. The value of the tax multiplier is

▸ -4.

▸ -5.

▸ -10.

▸ -20.

Textbook

Principles of Economics

Edition: 12^th

Authors: Case, Fair, Oster

Read 92 times

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crdsa

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lurielbank Author

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Thanks

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this is exactly what I needed

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