Multiple Choice
A reason the government expenditure multiplier is larger than 1 is because
A) investment increases when government expenditure increases.
B) government expenditure always increases.
C) government expenditure changes generate changes in consumption expenditure.
D) taxes are left unchanged.
Correct Answer:

Verified
Correct Answer:
Verified
Q2: Ignoring any supply-side effects, how does the
Q3: A tax cut decreases government saving and
Q4: Automatic fiscal policy is at work if,
Q5: In early 2017, economists predicted that the
Q6: What is needs-tested spending and how does
Q8: In 2007, Denmark's government had expenditures of
Q9: When interest income is taxed and the
Q10: The largest source of revenue for the
Q11: How can discretionary fiscal policy be used
Q12: The structural deficit is that deficit that