6. Taxes and the multiplier Aa Aa Check all of the following statements that acc

Question

6. Taxes and the multiplier Aa Aa Check all of the following statements that accurately describe fiscal aspects of taxes. A $5 billion tax cut provides an economy with more stimulus than a $5 billion increase in government purchases of goods and services Targeting a $10 billion tax cut at the wealthy typically provides an economy with more stimulus than a $10 billion tax cut targeted at minimum-wage earners. with a lump-sum tax, the amount of tax revenue due does not depend on a taxpayer's income.

Explanation / Answer

(6) Correct options are:

- $10B tax cut of wealthy provides more stimulus than $10B tax cut from the poor

- With lump-sum tax, the tax revenue does not depend on taxpayer income.

(13) All 3 options are correct.

(next question) Right option is:

- Public debt & government debt held by social security and other trust funds

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