Suppose the tax multiplier is 2.7. assuming prices are constant, this means that
group o...
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Business, 22.01.2020 05:31, soulspiritsa
Suppose the tax multiplier is 2.7. assuming prices are constant, this means that
group of answer choices
a $1 rise in government spending will raise both total spending and real gdp (assuming prices are constant) by $2.70.
a $1 decline in taxes will lower real gdp by $2.70.
a $1 decline in taxes will raise real gdp by $2.70.
a $1 rise in taxes will change interest rates by 2.70 percent compared to what they were before the $1 rise in government spending.
none of these options.
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Answers: 3
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