A $90 Billion Reduction in Taxes Increases Real GDP by $378

question 80

Multiple Choice

A $90 billion reduction in taxes increases Real GDP by $378 billion.Assuming a constant price level,what does the tax multiplier equal?

• A) 4.2
• B) 3.2
• C) 42
• D) 0.42
• E) 0.32

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Definitions:

Ventricular Contractions

The rhythmic tightening and pumping action of the heart's ventricles, which send blood out to the body (systole) and relax to fill with blood (diastole).

Inferior Vena Cava

The large vein that carries deoxygenated blood from the lower and middle body into the right atrium of the heart.

Saphenous

Referring to veins located in the legs, particularly the great and small saphenous veins, which are often involved in varicose veins and bypass surgery.

Femoral

Femoral refers to anything pertaining to the femur or thigh bone, the longest and strongest bone in the human body.