Multiple Choice
The balanced budget multiplier is equal to
A) 1
B) 1 ÷ (1 - MPC)
C) 1 ÷ (1 - MPS)
D) zero
E) Y - Y*
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q4: In a model with a proportional income
Q5: If the MPC is equal to .75
Q6: Suppose that government purchases increase by $200
Q7: If the marginal propensity to consume is
Q8: A $100 increase in autonomous government purchases
Q10: If the MPC equals the 2/3, then
Q11: The balanced budget multiplier<br>A)increases as MPC increases<br>B)increases
Q12: When we relax the assumption that net
Q13: If the government wants to increase equilibrium
Q14: If the MPC = 0.8 and both