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What Does the Balanced Budget Multiplier State

Question 39

Multiple Choice

What does the balanced budget multiplier state?


A) An increase in government spending plus an equal increase in taxes, leads to higher equilibrium output.
B) An increase in government spending leads to a decrease in equilibrium output.
C) An increase in taxes leads to an increase in equilibrium output.
D) An increase in government spending plus an equal decrease in taxes will lead to lower

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