Taxes Are Reduced by $15 Billion and Income Increases by $75

question 162

Multiple Choice

Taxes are reduced by $15 billion and income increases by $75 billion. The value of the tax multiplier is

• A) 9.
• B) -4.
• C) -5.
• D) -10.

---

Definitions:

Rice

A cereal grain which is a staple food for a large part of the world's human population, especially in Asia.

World Price

The international market price of a good or service, influenced by global supply and demand conditions.

Domestic Supply

The total amount of goods and services provided by a country's own economy without importing from other countries.

Imported

Describes goods or services brought into one country from another for sale, usually regulated by import quotas and tariffs.