Suppose That a $114 Billion Increase in Government Spending Increases

Multiple Choice

Suppose that a $114 billion increase in government spending increases Real GDP by $399 billion,and that a $96 billion tax reduction increases Real GDP by $336 billion.In this situation,the tax multiplier is _______________ the government spending multiplier.

A) less than
B) greater than
C) equal to
D) none of the above