What is the impact of ignoring taxes when calculating the multiplier effect?

• A. Ignoring taxes underestimates the multiplier effect, leading to lower predictions of GDP increase.
• B. Ignoring taxes can overestimate the multiplier effect, leading to inaccurate predictions of GDP increase.
• C. Ignoring taxes reverses the multiplier effect, leading to a decrease in GDP.
• D. Ignoring taxes has no impact on the multiplier effect.

Answer: (B)