The Balanced Budget Multiplier Is Based on the _{--------------------}point That

question 47

Multiple Choice

The balanced budget multiplier is based on the _{--------------------}point that the multiplier is larger than the multiplier so that an equal increase in government expenditure and taxes _{--------------------} aggregate demand.

• A)tax; expenditure; does not change
• B)tax; expenditure; decreases
• C)expenditure; tax; does not change
• D)expenditure; tax; decreases
• E)expenditure; tax; increases

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