The Balanced Budget Multiplier Is

question 51

Multiple Choice

The balanced budget multiplier is

• A)misnamed because it does not leave the budget balanced.
• B)equal to zero because taxes and government expenditure are changed to leave the budget balanced.
• C)greater than zero and greater than the government expenditure multiplier.
• D)greater than zero and less than the government expenditure multiplier.
• E)less than zero,that is,it is negative.

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