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The Balanced Budget Multiplier Is

Question 151

Multiple Choice

The balanced budget multiplier is


A) equal to zero because taxes and government expenditure are changed to leave the budget balanced.
B) misnamed because it does not leave the budget balanced.
C) greater than zero and less than the government expenditure multiplier.
D) greater than zero and greater than the government expenditure multiplier.
E) less than zero,that is,it is negative.

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