Suppose the multiplier is 4 and lump-sum taxes are increased by $16 in a closed economy.We can predict that:
A)GDP will increase by $64.
B)GDP will decrease by $64.
C)the aggregate expenditures schedule will shift downward by $12.
D)inflation will occur.

Question

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The Answer of Suppose the multiplier is 4 and lump-sum taxes are increased by $16 in a closed economy.We can predict that:
A)GDP will increase by $64.
B)GDP will decrease by $64.
C)the aggregate expenditures schedule will shift downward by $12.
D)inflation will occur.

Suppose the Multiplier Is 4 and Lump-Sum Taxes Are Increased