Multiple Choice
If the government spending multiplier is 7, the tax multiplier must be
A) -6.
B) -3.
C) 3.
D) 7.
Correct Answer:
Verified
Related Questions
Q167: Table 11.1 Q168: Table 11.1 Q169: As we move along a planned expenditures Q170: The formula for the government spending multiplier Q171: In an open economy including the government, Q173: An increase in the price level shifts Q174: A $50 billion increase in both government Q175: An upward shift of the planned expenditure Q176: The formula for the tax multiplier is Q177: A downward shift of the planned expenditure
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