The Various Studies of the Size of the Fiscal Multiplier

question 152

Multiple Choice

The various studies of the size of the fiscal multiplier by different economists suggest

• A) general agreement that the fiscal multiplier value is relatively high.
• B) general agreement that the fiscal multiplier value has a range between 0.8 and 1.2.
• C) general agreement that the fiscal multiplier value is zero.
• D) there is a wide range of opinion on the size of the fiscal multiplier.

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Definitions:

Infinite Population

A population that is so large it is effectively endless, making it impossible to examine every member.

Standard Error

A measure of the variability or spread of a sample statistic from a sample to the true population parameter.

Normal Distribution

A bell-shaped curve that represents the distribution of a set of data where most values cluster around a central region, with values tapering off symmetrically in both directions from the center.

Sampling Distribution

The distribution of a statistic (like the mean or proportion) obtained from a large number of samples drawn from the same population.