The taxation multiplier tells us:
A) the amount by which GDP increases when government spending increases by $1.
B) tells us the amount GDP decreases when taxes increase by $1.
C) the fraction of each tax dollar that will increase GDP when consumers spend $1.
D) the amount by which government spending increases when GDP increases by $1.
Correct Answer:
Verified
Q108: If the MPC is 0.8,and the government
Q109: For any MPC,the taxation multiplier is:
A)smaller in
Q110: If the government increased taxes by $400,and
Q111: If the MPC is 0.6,and the government
Q112: If the government cut taxes by $200,and
Q114: The taxation multiplier is calculated as:
A)1/(1 -
Q116: If the MPC = 0.75,then the taxation
Q122: If the government wishes to increase GDP
Q123: If the government wishes to increase GDP
Q131: If the government wishes to decrease GDP
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