The size of the multiplier effect is larger when
A) leakages are smaller.
B) leakages are larger.
C) the economy is close to potential GDP.
D) interest rates are higher.
E) injections are smaller.
Correct Answer:
Verified
Q18: What decreases the size of the multiplier
Q19: Which is an injection into the circular
Q20: What decreases the size of the multiplier
Q21: Which government fiscal policy is a negative
Q22: Which government fiscal policy is a positive
Q24: The "Yes - Markets Self-Adjust" camp agrees
Q25: The fiscal policy to counter an inflationary
Q26: The "No - Markets Fail Often" camp
Q27: When real GDP exceeds potential GDP, fiscal
Q28: Which government fiscal policy is a positive
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