The tax multiplier is calculated as "one minus the government purchases multiplier."

If the interest rate is 8 percent, a person who is offered the opportunity to buy an annuity paying $30,000 per year forever should

a. do so if the price is greater than $375,000 b. do so if the price is less than $375,000 c. be willing to pay only $37,037 for it d. be willing to pay $77,037 for it e. be willing to pay no more than $300,000 for it

A trade deficit experienced by a country during a year generally signals the poor health of the economy

a. True b. False Indicate whether the statement is true or false