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In the Complete Algebraic Formulation of ISLM

Question 85

Multiple Choice

In the complete algebraic formulation of ISLM,


A) the government spending multiplier is greater than the tax mulitplier as long as b <1.
B) the government spending mulitplier is less than the tax multiplier as long as b<1.
C) monetary policy is always more powerful than fiscal policy.
D) fiscal policy is always more powerful than monetary policy.

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