The Result of the Balanced Budget Multiplier Is That Aggregate

question 204

Multiple Choice

The result of the balanced budget multiplier is that aggregate demand changes by the amount of the change in:

• A)government spending.
• B)tax revenue.
• C)government spending plus tax revenue.
• D)government spending minus tax revenue.

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Definitions:

Sales

The total revenue earned from goods sold or services provided over a certain period of time.

Exchange Rates

The rate at which one currency can be exchanged for another, influencing international trade and economics.

Foreign Subsidiary

A company owned or controlled by another company (parent) located in a different country, conducting business operations in the subsidiary's local market.

Functional Currency

This represents the primary currency of the economic environment in which a business operates, determining the currency in which its financial statements are presented.