The Size of the Multiplier Effect for Government Spending Is

question 91

True/False

The size of the multiplier effect for government spending is not as big as for tax and transfer changes.

---

Definitions:

Normative Economic Statement

An opinion or judgment that reflects values or what ought to be, rather than factual claims about what is.

Social Security

A government program designed to provide financial support to individuals during retirement, disability, or upon the death of a primary wage earner.

Government

The system or group of people governing an organized community, often a state, including institutions that establish and enforce public policies and laws.

Normative Statements

Assertions that express opinions about what ought to be, involving values and ethical judgments, rather than empirical facts.