The multiplier effect of a(n) _____ in transfer payments is _____ that of an equal increase in government purchases of goods and services because some of the transfer payment is likely to be saved.
A) increase; smaller than.
B) increase; smaller than
C) increase; larger than.
D) increase; larger than
E) decrease; larger than.
F) decrease; larger than
G) increase; equal to.
H) increase; equal to
Correct Answer:
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