Which of the following would increase the size of the government purchases multiplier?
A) an increase in the tax rate
B) an increase in the quantity of imports purchased by households from an increase in income
C) a decrease in the amount of consumption spending by households from an increase in income
D) a decrease in the amount saved by households from an increase in income
E) an increase in the importance of government spending to the economy
Correct Answer:
Verified
Q70: The aggregate demand curve will shift to
Q130: The multiplier effect refers to the series
Q133: A change in consumption spending caused by
Q134: The tax multiplier is smaller in absolute
Q135: Suppose the federal government increased spending by
Q136: The aggregate demand curve will shift to
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents