The total government expenditure multiplier is less than one because
A) government expenses affect labor demand.
B) labor supply reacts to interest rate changes and consumption demand is affected by taxes.
C) investment demand falls dramatically when the government goes into debt.
D) the marginal propensity to consume is less than one.

Question

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The Answer of The total government expenditure multiplier is less than one because
A) government expenses affect labor demand.
B) labor supply reacts to interest rate changes and consumption demand is affected by taxes.
C) investment demand falls dramatically when the government goes into debt.
D) the marginal propensity to consume is less than one.

The Total Government Expenditure Multiplier Is Less Than One Because