If government expenditure on goods and services increase by $10 billion, then aggregate demand
A) decreases by $10 billion.
B) decreases by $10 billion multiplied by the government expenditure multiplier.
C) increases by $10 billion multiplied by the tax multiplier.
D) increases by $10 billion.
E) increases by $10 billion multiplied by the government expenditure multiplier.
Correct Answer:
Verified
Q103: The balanced budget multiplier is
A)greater than zero
Q104: Which of the following is true?
A)Discretionary fiscal
Q105: The government collects tax revenues of $100
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