Suppose That a $50 Billion Increase in Government Spending Increases

question 72

Multiple Choice

Suppose that a $50 billion increase in government spending increases Real GDP by $260 billion,and that a $50 billion tax reduction increases Real GDP by $290 billion.In this situation,the tax multiplier is _______________ the government spending multiplier.

• A) less than
• B) greater than
• C) equal to
• D) none of the above

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Definitions:

Negotiable Document of Title

A document that guarantees the delivery of goods and can be transferred by endorsement to another party, facilitating the trading of goods without physical movement.

Seller's Ownership

The legal right of a seller to dispose of goods or property, affirming they have title to the items they are selling.

Accidental Sale

A transaction where goods or property are sold without the seller's intentional consent, often due to a mistake or misunderstanding.

Good-Faith Purchaser

An individual who buys property without knowledge of any existing claims or defects against it, thereby gaining legal protection.