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:

Policies

are principles or courses of action adopted or proposed by an organization, government, or individual, intended to guide decisions and achieve rational outcomes.

Mid-Nineteenth Century

Refers to the period from 1850 to 1860, a time characterized by significant social, economic, and political changes in the United States, often associated with pre-Civil War tensions.

American Society

A complex entity characterized by a diverse population, cultural pluralism, and a democratic political system.

Women

Female human beings, often discussed in contexts relating to social, political, economic, and gender rights issues.