If the value of a government-taxation multiplier is 1.8, which of the following is likely to be true if all other variables remain unchanged?

A) A $1.80 increase in taxation increases gross domestic product by $1.80.
B) A $1 reduction in taxation increases gross domestic product by $1.80.
C) A $1 increase in taxation increases gross domestic product by $1.80.
D) A $1.80 reduction in taxation increases gross domestic product by $1.80.


B

Economics

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