What is the government multiplier?
A) It measures how much total national income is increased by an increase in government spending.
B) It measures how much government spending is increased each year.
C) It measures how much government collects in tax revenues each year.
D) It measures how much government budgets are affected by the rate of inflation.
Correct Answer:
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Q14: Discuss the impact of the accelerator and
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Q16: List and describe limitations of the accelerator.
-State
Q17: List and describe limitations of the accelerator.
-Explain
Q18: The multiplier effect
A) measures how much a
Q20: Assume that government spending increases by $1
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Q23: Assume that the marginal propensity to consume
Q24: If the objective of government policy during
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