Which of the following formulas is used to find the cumulative increase in AD from a particular fiscal stimulus?
A) Fiscal stimulus ÷ the multiplier.
B) Fiscal stimulus ÷ MPC.
C) The multiplier × fiscal stimulus.
D) MPC × fiscal stimulus.
Correct Answer:
Verified
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Q42: Which of the following explains why the
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Q44: The balanced budget multiplier is equal to
A)0.
B)1.
C)1
Q45: The balanced budget multiplier says that
A)An increase
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