The Tax Multiplier

question 235

Multiple Choice

The tax multiplier

• A)is negative.
• B)is larger in absolute value as compared to the government spending multiplier.
• C)is a measure of how much taxes will fall when income is falling.
• D)is always less than one.

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Definitions:

Widely Dispersed

Refers to assets, individuals, or entities that are spread out over a large geographic area or among a wide range of categories or types.

Socially Responsible Investing

Investing strategies that consider both financial return and social/environmental good to bring about social change.

Growing Practice

An activity or profession that is experiencing an increase in size, number, or both, often used in relation to businesses or industries.

Issuing Business

A company or entity that offers securities for sale to the public or insiders, including stocks and bonds, to raise capital.