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Author Question: If a 15 billion reduction in taxation produces a change of 20 billion in output, the value of the ... (Read 31 times)

Chloeellawright

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on: Jun 30, 2018
If a 15 billion reduction in taxation produces a change of 20 billion in output, the value of the government taxation multiplier is ________.
 
  A) 35 B) 0.75 C) 5 D) 1.3

Question 2

An increase in the interest rate results in
 
  A) a smaller opportunity cost of investment and so planned investment spending decreases.
  B) a greater opportunity cost of investment and so planned investment spending increases.
  C) a greater opportunity cost of investment and so planned investment spending decreases.
  D) a smaller opportunity cost of investment and so planned investment spending increases.


spencer.martell

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Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

C


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