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Author Question: If the government spending multiplier is 10, then the tax multiplier (Read 122 times)

geoffrey

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Question 1

Refer to the information provided in Figure 24.5 below to answer the question(s) that follow.










Refer to Figure 24.5. If the economy is in equilibrium and the government increases spending by $200 billion and increases taxes by $200 billion, equilibrium aggregate output


◦ does not change.
◦ increases by $200 billion.
◦ increases by less than $200 billion.
◦ increases by more than $200 billion.

Question 2

If the government spending multiplier is 10, then the tax multiplier


◦ is -4.
◦ is -5.
◦ is -9.
◦ cannot be determined because the 
MPS is not given.


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Marked as best answer by geoffrey on Apr 19, 2019

LP

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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geoffrey

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LP

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