The Balanced Budget Multiplier Is

question 151

Multiple Choice

The balanced budget multiplier is

• A)equal to zero because taxes and government expenditure are changed to leave the budget balanced.
• B)misnamed because it does not leave the budget balanced.
• C)greater than zero and less than the government expenditure multiplier.
• D)greater than zero and greater than the government expenditure multiplier.
• E)less than zero,that is,it is negative.

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Definitions:

Adaptive Value

The extent to which a trait, behavior, or characteristic increases the survival and reproductive success of an organism in its environment.

Mechanistic Causes

Explanations based on the physical and biochemical processes underlying phenomena, often used in scientific contexts to understand biological functions.

Darwinian Puzzle

A phenomenon or trait that appears to reduce the fitness of individuals, posing a question as to why it has evolved or been maintained through natural selection.

Chemicals

Substances with distinct molecular compositions that are used in or produced by chemical processes.