The intuition behind the balanced budget multiplier is fairly straightforward. When the government taxes the public and spends the money, it is taking funds from people who would not have spent it all, and giving it to people (government agencies) who will spend it all. Can you think of any flaw in this logic?

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The Answer of The intuition behind the balanced budget multiplier is fairly straightforward. When the government taxes the public and spends the money, it is taking funds from people who would not have spent it all, and giving it to people (government agencies) who will spend it all. Can you think of any flaw in this logic?

The Intuition Behind the Balanced Budget Multiplier Is Fairly Straightforward