Multiple Choice
The balanced budget multiplier applies when a $50 billion increase in government expenditure is financed by a $50 billion ________ in tax revenue and the balanced budget multiplier shows that in this case there is ________ effect on aggregate demand.
A) decrease;no
B) decrease;a positive
C) increase;no
D) increase;a positive
E) increase;a negative
Correct Answer:
Verified
Correct Answer:
Verified
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