Which of the Following Would Increase the Size of the Government

question 174

Multiple Choice

Which of the following would increase the size of the government purchases multiplier?

• A)an increase in the tax rate
• B)an increase in the quantity of imports purchased by households from an increase in income
• C)a decrease in the amount of consumption spending by households from an increase in income
• D)a decrease in the amount saved by households from an increase in income