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Author Question: If the tax multiplier is -9 and taxes are reduced by $100 billion, output (Read 82 times)

erika

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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.


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Marked as best answer by erika on Apr 19, 2019

emily12345

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erika

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emily12345

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