The tax multiplier is calculated as 1 / (1 - b). Indicate ...

[anjilletteb]

The tax multiplier is calculated as 1 / (1 - b).
 
  Indicate whether the statement is true or false

Question 2

Most economists agree with which of the following?
 
  A) Passive policymaking is likely to exert sizable long-run effects on real GDP.
  B) Active policymaking is likely to exert sizable long-run effects on real GDP.
  C) Active policymaking is unlikely to exert sizable long-run effects on real GDP.
  D) none of the above

[momolu]

Answer to Question 1

FALSE

Answer to Question 2

C