[Solved] If the Tax Multiplier Is -1

Question 130
Multiple Choice
arrowQuestion 130arrow

If the tax multiplier is -1.5 and a $20 billion tax increase is implemented, what is the change in GDP, holding everything else constant? (Assume the price level stays constant.)

A)a $30 billion decrease in GDP
B)a $30 billion increase in GDP
C)a $300 billion increase in GDP
D)a $13.33 billion decrease in GDP
E)a $13.33 billion increase in GDP


10+ million students use Quizplus to study and prepare for their homework, quizzes and exams through 20m+ questions in 300k quizzes.


Explore our library and get Economics Homework Help with various study sets and a huge amount of quizzes and questions

Related Questions

Get Free Access Now!

Get free access by uploading any valuable academic documents


Invite your friends by sharing your unique referral link, and get a free access

Invite a friendInvite a friendInvite a friend
Join Us
Join Us

Sign up to get 5 free question for every quiz you visit. Or Subscribe and get instant access