A Study of Estimated Multipliers in the Major Econometric Models

Multiple Choice

A study of estimated multipliers in the major econometric models shows that

A) the government-spending multiplier tends to increase and then later decrease over time.
B) the monetary multiplier is much larger than the government spending multiplier.
C) there is quite a bit of variation in the value of the multipliers among the models.
D) A and C are both correct.