The magnitude of the tax multiplier is_{--------------------} the magnitude of the government expenditure multiplier.

Name: The magnitude of the tax multiplier is -------------------- the magnitude of the government expenditure multiplier.
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Quizplus · Accepted Answer

The tax multiplier is smaller than the government expenditure multiplier because a change in taxes affects disposable income and consumption indirectly, whereas government spending directly affects aggregate demand.

The Magnitude of the Tax Multiplier Is-------------------- the Magnitude of the Government

The Magnitude of the Tax Multiplier Is_{--------------------} the Magnitude of the Government