Other things equal, the multiplier effect of a change in government spending is:
A) the same as the multiplier effect of a change in taxes.
B) the same as the multiplier effect of a change in investment or in autonomous consumption.
C) less than that associated with a change in investment.
D) greater than that associated with a change in investment.
Correct Answer:
Verified
Q16: Q17: If the MPC is 0.8, the net Q18: Q19: Which of the following best completes this Q20: Suppose that the government reduces its spending Q22: If the MPC is 0.8, the net Q23: If the MPC is 0.8, the net Q24: Suppose, the autonomous government expenditure multiplier is Q25: Suppose that the government increases its spending Q26: The government budget balance (BB) is:![]()
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A) government
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