If the tax multiplier is -15 and taxes are increased by $150 billion, output
A. increases by $10 billion.
B. increases by $2,250 billion.
C. falls by $2,250 billion.
D. falls by $10 billion.
Answer: C
Economics
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A surplus budget can be used to combat an inflationary gap
Indicate whether the statement is true or false
Economics
Suppose that in the economy of Boise, Amy earns an income of $50,000 a year and pays $10,000 in income taxes; Bailey earns an income of $25,000 a year and pays $8,000 in income taxes. Based on this information, we could say that Boise's tax system is
A) proportional. B) progressive. C) regressive. D) flat.
Economics