The balanced budget multiplier is based on the --------------------point that the multiplier is larger than the multiplier so that an equal increase in government expenditure and taxes -------------------- aggregate demand.
A) tax; expenditure; does not change
B) tax; expenditure; decreases
C) expenditure; tax; does not change
D) expenditure; tax; decreases
E) expenditure; tax; increases
Correct Answer:
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Q17: If the budget deficit is $50 billion
Q18: In 2009, Congress passed tax laws to
Q19: Needs-tested spending
A)decreases in recessions and increases in
Q20: Q21: If an economy is in an equilibrium Q23: The balanced budget multiplier applies when a Q24: As contrasted to the mainstream view, Keynesian Q25: Government tax revenues-------------------- during an expansion and Q26: When taxes are cut, aggregate demand --------------------and Q27: The annual statement of the outlays, tax
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