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Katie32 Katie32
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A year ago
Multiplier Effects of Transfer Payments and Taxes

Assume the tax multiplier is -6.5 and a $400 billion tax increase is implemented. Holding everything else constant including the price level, what is the change in GDP?

▸ a $0.016 billion decrease in GDP

▸ a $2600 billion increase in GDP

▸ a $0.016 billion increase in GDP

▸ a $2600 billion decrease in GDP
Textbook 
Macroeconomics

Macroeconomics


Edition: 3rd
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nursethomasnursethomas
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A year ago
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Katie32 Author
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A year ago
Thanks
bioc
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Yesterday
I appreciate what you did here, answered it right Smiling Face with Open Mouth
acaruso
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2 hours ago
Brilliant ツ
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