The Balanced-Budget Multiplier Is Equal to

question 270

Multiple Choice

The balanced-budget multiplier is equal to

• A)the percentage increase in government expenditures.
• B)the reciprocal of the increase in government expenditures.
• C)the percentage increase in taxes.
• D)1.

---

Definitions:

Round Answers

Round Answers indicates the practice of adjusting numerical answers to a specified degree of precision, often the nearest whole number, to simplify presentation or calculation.

Simple Interest

Simple interest is a calculation of interest that does not take into account the effect of compounding. Interest is applied only to the principal over a set period.

Monthly Basis

A timeframe or calculation done once every month or for each month.

Round Answers

A mathematical procedure of adjusting the figure to the nearest desired value or precision, often in calculations or data presentations.