A study of estimated multipliers in the major econometric models shows that
A)the government-spending multiplier tends to increase and then later decrease over time.
B)the monetary multiplier is much larger than the government spending multiplier.
C)there is quite a bit of variation in the value of the multipliers among the models.
D)A and C are both correct.

Question

Quizplus · Accepted Answer

The statement "there is quite a bit of variation in the value of the multipliers among the models" is true, indicating choice C is correct. Additionally, the statement "the government-spending multiplier tends to increase and then later decrease over time" is also true, indicating choice A is correct. Therefore, both A and C are both true, making choice D the correct answer. The statement in choice B, "the monetary multiplier is much larger than the government spending multiplier," is not supported by the information given in the question.

A Study of Estimated Multipliers in the Major Econometric Models