The magnitude of the government expenditure multiplier is ________ the magnitude of the tax multiplier.

Name: The magnitude of the government expenditure multiplier is ________ the magnitude of the tax multiplier.
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Question

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The magnitude of the government expenditure multiplier is greater than the magnitude of the tax multiplier because government spending directly affects aggregate demand, while taxes indirectly affect demand through changes in disposable income.

The Magnitude of the Government Expenditure Multiplier Is ________ the Magnitude