Multiple Choice
If the value of a government taxation multiplier is 1.8,which of the following is likely to be true if all other variables remain unchanged?
A) A $1 reduction in taxation increases GDP by $1.80.
B) A $1 increase in taxation increases GDP by $1.80.
C) A $1.80 increase in taxation increases GDP by $1.80.
D) A $1.80 reduction in taxation increases GDP by $1.80.
Correct Answer:
Verified
Correct Answer:
Verified
Q140: Contractionary fiscal policy leads to a _.<br>A)
Q141: Quantitative easing occurs when the Fed _.<br>A)
Q142: Which of the following is true of
Q143: If consumers save the entire amount of
Q144: If the nominal interest rate falls,everything else
Q146: To _ the long-term real interest rate,the
Q147: Scenario: The following figure shows the federal
Q148: Scenario: The following figure shows the federal
Q149: Explain the goal of a countercyclical fiscal
Q150: Which of the following is likely to