The Balanced Budget Multiplier Is Based on the Point That

question 92

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

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