Suppose That a $4 Billion Increase in Government Spending Increases

question 20

Multiple Choice

Suppose that a $4 billion increase in government spending increases Real GDP by $60 billion,and that a $3 billion tax reduction increases Real GDP by $39 million. In this situation,the tax multiplier is _______________ the government spending multiplier.

• A) less than
• B) greater than
• C) equal to
• D) none of the above

---

Definitions:

Nonsmokers

Individuals who do not engage in the activity of smoking tobacco products.

Noncommunicable Diseases

Chronic diseases not passed from person to person, such as heart disease, diabetes, and cancer.

Pathogens

Microorganisms, such as bacteria, viruses, and fungi, that can cause disease in humans and other organisms.

Being Active

Engaging in regular physical activities or exercises to improve one's health and physical fitness.