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Which of the Following Is True of Multipliers

Question 43

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.

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