If the government uses fiscal policy to close a recessionary gap, government
A) expenditure must be increased by more than the gap because of the government expenditure multiplier.
B) taxes can be raised by less than the gap because of the tax multiplier.
C) taxes must be cut by more than the gap because of the tax multiplier.
D) taxes must be raised by more than the gap because of the tax multiplier.
E) expenditure can be increased by less than the gap because of the government expenditure multiplier.
Correct Answer:
Verified
Q5: Q6: The national debt is the amount Q7: The standard view in economics is that Q8: The national debt can only be reduced Q9: Discretionary fiscal policy is handicapped by![]()
A)by which
A)law-making time
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