The Multiplier Effect of Fiscal Policy Means That a Change

question 80

Multiple Choice

The multiplier effect of fiscal policy means that a change in government spending:

• A) has a larger impact on output than the size of the change in spending.
• B) leads to a change in the money supply that is a multiple of the spending change.
• C) has a bigger impact on the budget balance than the size of the spending change.
• D) has more impact on the number of jobs than on GDP.

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