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masha68 [24]
3 years ago
5

When the government levies a $100 million tax on people's income and puts the $100 million back into the economy in the form of

a spending program such as new interstate highway construction, the Select one: a. tax, then, generates a $100 million decline in national income b. tax multiplier overpowers the income multiplier, triggering a rollback in national income c. effect on national income is uncertain d. level of national income expands by $100 million
Business
1 answer:
Nadusha1986 [10]3 years ago
6 0

Answer: level of national income expands by $100 million

Explanation: The level of National income expands by $100 million. National income which can also be termed GDP(gross domestic product) is the measure of measure of economic production in a country over a specific time.

Increase in GDP is caused by a whole number of factors some of which includes;

*Increase in productivity

*Increase in investment

*Government spending etc.

All the listed above are examples of what the Government has done with the acquired $100 million in tax.

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