In 2013 the Government Increased Social Security Income Taxes by 2

question 239

Multiple Choice

In 2013 the government increased Social Security income taxes by 2 percentage points and increased the income tax rate on Americans making more than $400,000 by 4.6 percentage points. These tax hikes

• A) decreased the size of the multiplier.
• B) increased the size of the multiplier.
• C) had no effect on the size of the multiplier.
• D) None of the above answers are correct because the effect on the size of the multiplier is ambiguous.

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