If an increase in government spending of $20 million results in a $100 million increase in GDP, then the spending multiplier is

Free riding is primarily a characteristic of pure private goods

Indicate whether the statement is true or false

A major objective of tax policy should be to

a. avoid distortions in resource allocation while raising revenue b. divert savings from the private to the public sector c. increase the government's ability to direct the economy d. supplement resources entering the country from foreign aid e. all of the above