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Author Question: If the government spending multiplier is 2, then the tax multiplier (Read 79 times)

ghost!

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Question 1

If the tax multiplier is -15 and taxes are increased by $150 billion, output


◦ falls by $2,250 billion.
◦ falls by $10 billion.
◦ increases by $10 billion.
◦ increases by $2,250 billion.

Question 2

If the government spending multiplier is 2, then the tax multiplier


◦ is -2.
◦ is -1.
◦ is -0.5.
◦ cannot be determined because the 
MPS is not given.


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Marked as best answer by ghost! on Apr 19, 2019

katheyjon

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ghost!

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Reply 2 on: Apr 19, 2019
YES! Correct, THANKS for helping me on my review


tranoy

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Reply 3 on: Yesterday
Excellent

 

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