The value of the balanced-budget multiplier is
A) 0.
B) greater than 0 but less than 1.
C) greater than 1.
D) 1.
Correct Answer:
Verified
Q324: If the MPC is 0.9, the tax
Q325: Assume that taxes depend on income. The
Q326: If the MPS is 0.1, the tax
Q327: [-(MPC/MPS)] is the formula for the
A) consumption
Q328: As the MPC increases, the absolute value
Q330: Assume that taxes depend on income. The
Q331: The balanced-budget multiplier works whenever the government
Q332: The tax multiplier is a negative multiplier.
Q333: As the MPC decreases, the government spending
Q334: Assume that taxes depend on income. The
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