The formula for the tax multiplier is
A) (1 + b) / (1 - b) .
B) b / (1 - b) .
C) 1 / (1 - b) .
D) -b / (1 - b) .
Correct Answer:
Verified
Q171: In an open economy including the government,
Q172: If the government spending multiplier is 7,
Q173: An increase in the price level shifts
Q174: A $50 billion increase in both government
Q175: An upward shift of the planned expenditure
Q177: A downward shift of the planned expenditure
Q178: The balanced-budget multiplier is equal to
A) the
Q179: Price level is held constant when moving
Q180: Table 11.1 Q181: The balanced-budget multiplier is calculated as the
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