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Two Economists,A and B,believe That the Economy Currently Needs a Strong

Question 45

Multiple Choice

Two economists,A and B,believe that the economy currently needs a strong dose of expansionary fiscal policy.Economist A wants to cut taxes while economist B wants to raise government spending.It is probably the case that


A) Economist A believes the tax multiplier is larger than the government spending multiplier.
B) Economist B believes the government spending multiplier is equal to the tax multiplier.
C) Economist A believes the tax multiplier is smaller than the government spending mutiplier.
D) Economist B believes the tax multiplier is larger than the government spending multiplier.
E) a and d

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