Answered: Choose the correct answer: .Taxes are…

Choose the correct answer: .Taxes are reduced by $50 billion and income increases by $1,000 billion. The value of the tax multiplier is: -4. (B) -20. (C) -10. (D) -5.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter30: Government Budgets And Fiscal Policy

Section: Chapter Questions

Problem 6SCQ: What taxes would an individual pay if he were self-employed and the business is not incorporated?

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Choose the correct answer:

.Taxes are reduced by $50 billion and income increases by $1,000 billion. The value of the tax multiplier is:

-4. (B) -20. (C) -10. (D) -5.

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