One Way to Describe the Tax Multiplier Is That It

question 100

Multiple Choice

One way to describe the tax multiplier is that it equals the

• A) the spending multiplier
• B) the negative of the spending multiplier minus1.0
• C) the GNP gap minus the GDP gap
• D) the reciprocal of the marginal propensity to consume
• E) the best estimate of the optimal tax rate

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