Multiple Choice
The desired fiscal restraint is equal to
A) Excess AD times the multiplier.
B) Excess AD divided by the multiplier.
C) Desired AD reduction.
D) GDP gap divided by the multiplier.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q68: An example of fiscal policy occurs when
Q69: The balanced budget multiplier is equal to<br>A)0.<br>B)1.<br>C)1
Q70: How can a tax cut increase investment,and
Q71: An example of fiscal policy occurs when
Q72: Assume the MPC is 0.80.The change in
Q74: Today the federal government collects nearly<br>A)$1 billion
Q75: The fiscal policy target for achieving full
Q76: When the macro equilibrium is above full
Q77: Fiscal policy works principally through shifts of
Q78: If the economy has an inflationary GDP