The Tax Multiplier Is Smaller in Absolute Value Than the Government

question 193

Multiple Choice

The tax multiplier is smaller in absolute value than the government purchases multiplier because some portion of the

• A)decrease in taxes will be saved by households and not spent,and some portion will be spent on imported goods.
• B)decrease in taxes will be saved by households and not spent,and some portion will be spent on consumer durable goods.
• C)increase in government purchases will be saved by households and not spent,and some portion will be spent on imported goods.
• D)increase in government purchases will be saved by households and not spent,and some portion will be spent on consumer durable goods.

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Definitions:

Chlamydia

A sexually transmitted infection caused by the bacterium Chlamydia trachomatis, often asymptomatic but treatable with antibiotics.

Gonorrhea

A bacterial infection that is sexually transmitted and can infect the genitals, rectum, and throat.

Bacteria

Microscopic, single-celled organisms that inhabit virtually all environments, including soil, water, organic matter, and the bodies of plants and animals.

Ectopic Pregnancy

A pregnancy in which the fertilized ovum is implanted in any tissue other than the uterine wall. Most ectopic pregnancies occur in the fallopian tubes. Also known as a tubal pregnancy.