If the tax multiplier is -12 and taxes are increased by $6 billion, output
A) falls by $2 billion.
B) falls by $72 billion.
C) increases by $2 billion.
D) increases by $72 billion.
Correct Answer:
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Q169: Refer to the information provided in Figure
Q170: Refer to the information provided in Figure
Q171: The tax multiplier is
A) the ratio of
Q172: If the tax multiplier is -9 and
Q173: Refer to the information provided in Figure
Q175: Assume an economy is in equilibrium at
Q176: Refer to the information provided in Figure
Q177: Taxes are reduced by $70 billion and
Q178: Refer to the information provided in Figure
Q179: If the MPS is 0.5, the tax
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