If the Value of a Government Taxation Multiplier Is 1

question 145

Multiple Choice

If the value of a government taxation multiplier is 1.8,which of the following is likely to be true if all other variables remain unchanged?

• A) A $1 reduction in taxation increases GDP by $1.80.
• B) A $1 increase in taxation increases GDP by $1.80.
• C) A $1.80 increase in taxation increases GDP by $1.80.
• D) A $1.80 reduction in taxation increases GDP by $1.80.

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Definitions:

Behavioural Treatment

A range of therapies that focus on modifying harmful behaviors through conditioning and learning techniques.

Mutual Support Groups

Groups formed by individuals sharing common experiences or challenges, providing emotional assistance and understanding to each other in a non-professional setting.

Relapse Prevention

Strategies and techniques used to prevent the reoccurrence of a previously treated condition, often employed in the context of addiction and mental health.

Pharmacotherapy

The treatment of disease and symptoms through the administration of drugs, as an aspect of medical therapy.