Author Question: If the value of a government-taxation multiplier is 1.8, which of the following is likely to be true ... (Read 61 times)

Ebrown · **on:** Jun 30, 2018

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 1.80 increase in taxation increases gross domestic product by 1.80.
B) A 1 reduction in taxation increases gross domestic product by 1.80.
C) A 1 increase in taxation increases gross domestic product by 1.80.
D) A 1.80 reduction in taxation increases gross domestic product by 1.80.

Question 2

A method of measuring the money supply by looking at money as a temporary store of value is the

A) transactions approach. B) capital control.
C) liquidity approach. D) fiduciary monetary system.