A reason the government expenditure multiplier is larger than 1 is because
A) investment increases when government expenditure increases.
B) government expenditure always increases.
C) government expenditure changes generate changes in consumption expenditure.
D) taxes are left unchanged.
Correct Answer:
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Q168: Q169: Q170: Q171: If the government wants to engage in Q172: In the short run, an increase in Q174: Using the AD-AS model, an increase in Q175: If real GDP is less than potential Q176: Suppose real GDP exceeds potential GDP. If Q177: The demand-side effect of a change in Q178: The magnitude of the tax multiplier _ Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
