The Balanced Budget Multiplier Is Based on the Point That

question 66

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

---

Definitions:

Axon Terminals

The endpoints of axons where neurotransmitters are released to communicate with neighboring neurons or muscle cells.

Dendrites

Root-like structures, attached to the cell body of a neuron, that receive impulses, or incoming messages, from other neurons.

Acetylcholine

A neurotransmitter in both the central and peripheral nervous systems that plays a critical role in the activation of muscle action, learning, and memory.

Inhibitory

Refers to a process that restrains or suppresses the activity of a biological function or neural pathway.