The Forward-Looking Model Implies That the Keynesian Multiplier Is Greater

question 83

True/False

The forward-looking model implies that the Keynesian multiplier is greater for a temporary tax cut than a permanent tax cut.

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Definitions:

Debits

Entries on the left side of a double-entry bookkeeping system that increase asset or expense accounts, or decrease liability, equity, or revenue accounts.

Debits

An accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet or in an individual's bank account.

Assets

Resources owned or controlled by a person or company, expected to bring future economic benefits.

Credits

Accounting entries that increase liabilities or equity on the balance sheet, or decrease an asset or expense account on the income statement.