Taxes are reduced by $10 billion and income increases by $200 billion. The value of the tax multiplier is
A. -20.
B. -5.
C. -2.
D. -0.5.
Answer: A
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Which of the following is an example of negotiation costs?
A) Isabel knows that other neighbors' sleep patterns must also be affected by the howling dogs in her neighborhood and sets out to find those neighbors. B) Isabel is bound and determined to to find out which of her neighbors owns the howling dogs that are preventing her from getting a full night's slee
An inducement to take a particular action is called
A) the marginal benefit. B) the marginal cost. C) opportunity cost. D) an incentive.
When firms are faced with repeating games, such as the prisoner's dilemma, they:
A. are more likely to collude. B. are less likely to collude. C. will tend to act more like perfectly competitive firms. D. will be more likely to renege on agreements.
When the housing bubble burst, prices fell particularly severely in all of these states except:
a. Arizona. b. California. c. Nevada. d. Florida e. Prices fell severely in all of the above states.