Multiple Choice
A tax multiplier equal to − 4.30 would imply that a $100 tax increase would lead to a:
A) $430 decline in real GDP.
B) $430 increase in real GDP.
C) 4.3 percent increase in real GDP.
D) 4.3 percent decrease in real GDP.
E) 43 percent decrease in real GDP.
Correct Answer:
Verified
Correct Answer:
Verified
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