In the complete algebraic formulation of ISLM,
A) the government spending multiplier is greater than the tax mulitplier as long as b <1.
B) the government spending mulitplier is less than the tax multiplier as long as b<1.
C) monetary policy is always more powerful than fiscal policy.
D) fiscal policy is always more powerful than monetary policy.
Correct Answer:
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Q88: Fiscal policy is most effective when
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