Multiple Choice
Which of the following is true of multipliers?
A) The tax multiplier is smaller than the government spending multiplier.
B) The government cannot stimulate consumer spending using the tax multiplier.
C) The government spending multiplier is smaller than the tax multiplier.
D) The multiplier effect is restricted to changes in government purchases only.
E) The multiplier effect is restricted to changes in taxes only.
Correct Answer:

Verified
Correct Answer:
Verified
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