The government spending multiplier is
A) the ratio of the increase in output to the increase in government spending.
B) the ratio of the increase in consumption to the increase in government spending.
C) the ratio of the decrease in government spending to the increase in consumption.
D) the ratio of the increase in consumption to the increase in output.
E) the ratio of the increase in government spending to the increase in output.
Correct Answer:
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A)-(slope of
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Q14: The substitution effect that results from a
Q15: According to the Laffer Curve
A)higher tax rates
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Q18: Much of the writings of Adam Smith
Q19: The concept of Pareto optimality is a
A)useful
Q20: In an economic model, an endogenous variable
Q21: Government spending in the one-period model acts
Q22: Changes in total factor productivity are plausible
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