If the value of a government-taxation multiplier is 1.8, which of ...

[Ebrown]

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.

[nixon_s]

Answer to Question 1

B

Answer to Question 2

C

[Ebrown]

TYSM

[Zebsrer]

Excellent