If a 15 billion reduction in taxation produces a change of 20 ...

[Chloeellawright]

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]

Answer to Question 1

D

Answer to Question 2

C