Which of the Following Is True

question 95

Multiple Choice

Which of the following is true?

• A) All economists agree that the tax multiplier is greater than the government spending multiplier.
• B) All economists agree that the tax multiplier is smaller than the government spending multiplier.
• C) There is disagreement among economists regarding the size of the tax multiplier relative to the size of the government spending multiplier.
• D) In the standard Keynesian textbook analysis,the tax multiplier is greater than the government spending multiplier.
• E) c and d

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Definitions:

Nearly Identical Duration

A characteristic of two or more financial instruments whose cash-flows occur over a similar time frame, making their sensitivity to interest rate changes similar.

Hedge Fund Fee Structure

The compensation arrangement between hedge funds and their managers, typically involving a management fee plus a performance fee based on the fund's returns.

Management Fee

A charge levied by an investment manager for managing an investment fund's portfolio of securities.

Incentive Fee

A fee charged by hedge funds equal to a share of any investment returns beyond a stipulated benchmark performance.