Taxes are reduced by $50 billion and income increases by $1,000 billion. The value of the tax multiplier is:
A) - 5.
B) - 4.
C) - 10.
D) - 20.
Correct Answer:
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Q165: The level of consumption in the economy
Q166: Q167: The balanced budget multiplier equals: Q168: The consumption function describes the relationship between Q169: If the economy finds itself at a Q171: When the consumption function is expressed as Q172: Midwest State University in Nebraska is trying Q173: If the marginal propensity to consume is Q174: When we graph the 45 degree line, Q175: 
A) 1.
B) 1/
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