Multiple Choice
Comparing the simple Keynesian model with the IS-LM model,in the IS-LM model
A) the government spending multiplier is larger.
B) the balanced budget multiplier is larger.
C) the tax multiplier is smaller.
D) there is no difference between any of the multipliers.
Correct Answer:

Verified
Correct Answer:
Verified
Q33: The effect on the level of income
Q34: A liquidity trap occurs when the<br>A)LM curve
Q35: According to the modern Keynesian view,<br>A)both the
Q36: Analyze the effects of an increase in
Q37: Monetary policy will be<br>A)less effective the higher
Q39: A simultaneous reduction in both taxes and
Q40: Those economists who believe that monetary policy
Q41: Compare the effects of an autonomous increase
Q42: In the liquidity trap case where the
Q43: In the simple Keynesian model,government spending<br>A)have a