The multiplier:
A) measures the effect of government spending or tax cuts on national income.
B) measures the number of times each dollar is spent in the economy.
C) measures the supply of money in the economy.
D) measures the effect of household spending on national income.
Correct Answer:
Verified
Q72: The idea that if governments cut taxes
Q73: When the U.S.economy hits a recession,fiscal policy:
A)automatically
Q74: In order to accurately capture the multiplier
Q77: Ricardian equivalence will fail to hold if:
A)people
Q78: The effect of government spending or tax
Q79: In a booming economy,discretionary fiscal policy:
A)can be
Q81: If the MPC = 0.75,then the government
Q82: In 2008, consumers were mailed a stimulus
Q86: With the economy booming, the government starts
Q90: In a booming economy, fiscal policy automatically
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