How Do Needs- Tested Spending Programs Affect the Size of the Government

question 246

Multiple Choice

How do needs- tested spending programs affect the size of the government expenditure multiplier?

• A) They increase its size.
• B) They reduce its size.
• C) They have no effect on its size.
• D) The answer depends on the presence of induced taxes in the economy in addition to needs- tested spending programs.

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Natural Person

A human being, as opposed to a legal entity such as a corporation, recognized as a legal subject with rights and obligations.

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