The balanced budget multiplier applies when a $50 billion increase in government expenditure is financed by a $50 billion-------------------- in tax revenue and the balanced budget multiplier shows that in this case there is --------------------effect on aggregate demand.
A) decrease; a positive
B) increase; a positive
C) decrease; no
D) increase; a negative
E) increase; no
Correct Answer:
Verified
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 Q22: The balanced budget multiplier is based on 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 Q28: 
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