The Balanced Budget Multiplier

question 11

Multiple Choice

The balanced budget multiplier

• A)increases as MPC increases
• B)increases as MPC decreases
• C)depends on the absolute level of government spending
• D)is always greater than the government multiplier
• E)is equal to 1

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Definitions:

Prejudice

Preconceived opinion or bias against individuals or groups based on their characteristics, such as race, gender, or any other personal traits.

Beliefs

Convictions or acceptances that something exists or is true, especially without proof.

Feelings

Emotional states or reactions that are subjectively experienced, often as responses to stimuli or situations, and can influence behavior and thoughts.

Behavior Tendencies

Predominant patterns or inclinations in an individual's actions or reactions under specific circumstances.