Multiple Choice
A $10 billion reduction in taxes increases Real GDP by $90 billion. Assuming a constant price level,what does the tax multiplier equal?
A) 100
B) 9
C) 80
D) 190
E) 0.11
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q9: If the (average)tax rate falls by 10%
Q23: If the (average)tax rate falls by 10%
Q33: Tax revenues can rise as a result
Q36: If the AS curve is vertical,then it
Q61: The stimulus bill passed by the U.S.Congress
Q62: Economist A believes the economy is self-regulating.Economist
Q63: Suppose that a $30 billion increase in
Q89: "Demand-side fiscal policy is capable of changing
Q91: Two economists,A and B,believe that the economy
Q92: Which of the following questions is most