Author Question: If the tax multiplier is -9 and taxes are reduced by $100 billion, output (Read 75 times)

erika · **on:** Apr 19, 2019

Question 1

Taxes are reduced by $15 billion and income increases by $75 billion. The value of the tax multiplier is

◦ 9.
◦ -4.
◦ -5.
◦ -10.

Question 2

If the tax multiplier is -9 and taxes are reduced by $100 billion, output

◦ falls by $100 billion.
◦ falls by $900 billion.
◦ increases by $900 billion.
◦ increases by $100 billion.

emily12345 · **Reply #1 on:** Apr 19, 2019

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