APFIVE Tax Multiplier Effect On GDP
If in an economy the tax multiplier is estimated to be -1, what is the expected effect on GDP if taxes are cut by $50 billion?
A
GDP decreases by $50 billion.
B
GDP increases by $100 billion.
C
GDP increases by $50 billion.
D
GDP decreases by $100 billion.
Question Leaderboard
| Rank | |||||
|---|---|---|---|---|---|
| #1 | jovita.bhaumik | 0 | 2 | 0m 00s | -20 |
| #2 | nanxzu | 0 | 1 | 0m 30s | -40 |
| #3 | vanessaescobie | 0 | 1 | 0m 30s | -40 |
Items per page:
10
1 – 3 of 3