The Balanced Budget Multiplier Is Based on the Point That

Multiple Choice

The balanced budget multiplier is based on the point that the ________ multiplier is larger than the ________ multiplier so that an equal increase in government expenditure and taxes ________ aggregate demand.

A) tax;expenditure;does not change
B) expenditure;tax;does not change
C) expenditure;tax;decreases
D) expenditure;tax;increases
E) tax;expenditure;decreases