A $45 Billion Reduction in Taxes Increases Real GDP by $130.5

question 70

Multiple Choice

A $45 billion reduction in taxes increases Real GDP by $130.5 billion.Assuming a constant price level,what does the tax multiplier equal?

• A) 2.9
• B) 1.9
• C) 29
• D) 0.29
• E) 0.19

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Definitions:

Monophyletic

Describes a group of organisms that are classified in the same taxon and share a common ancestor.

Polyphyletic

Describes a taxonomic group that does not share an immediate common ancestor and therefore does not form a clade.

Clade

A single “branch” in the tree of life; each clade represents an organism and all of its descendants.

Opposable Toes

A characteristic of some primates where the big toe can be moved around to touch the other toes, allowing for more precise manipulation of objects.