The balanced budget multiplier is
A) negative because the magnitude of the government expenditure multiplier is larger than the magnitude of the tax multiplier.
B) positive because the magnitude of the government expenditure multiplier is smaller than the magnitude of the tax multiplier.
C) positive because the magnitude of the government expenditure multiplier is larger than the magnitude of the tax multiplier.
D) negative because the magnitude of the tax multiplier is larger than the magnitude of the government expenditure multiplier.
E) equal to zero.
Correct Answer:
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