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    Exam 12: Fiscal Policy
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    The Tax Multiplier
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The Tax Multiplier

Question 43

Question 43

Multiple Choice

The tax multiplier


A) is negative.
B) is larger in absolute value as compared to the government spending multiplier.
C) is a measure of how much taxes will fall when income is falling.
D) is always less than one.
E) increases with the size of the economy.

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