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The Balanced Budget Multiplier Is

Question 103

Multiple Choice

The balanced budget multiplier is


A) greater than zero and less than the government expenditure multiplier.
B) greater than zero and greater than the government expenditure multiplier.
C) equal to zero because taxes and government expenditure are changed to leave the budget balanced.
D) less than zero, that is, it is negative.
E) misnamed because it does not leave the budget balanced.

Correct Answer:

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