If the tax multiplier is -1.5 and a $200 billion tax increase is implemented, what is the change in GDP, holding everything else constant? (Assume the price level stays constant.)
A) a $300 billion decrease in GDP
B) a $30 billion increase in GDP
C) a $300 billion increase in GDP
D) a $133.33 billion increase in GDP
E) a $133.33 billion decrease in GDP
A
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a. True b. False Indicate whether the statement is true or false
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