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    Principles of Macroeconomics Study Set 11
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    Exam 9: The Government and Fiscal Policy
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    Prove That the Balanced Budget Multiplier Is Equal to One
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Prove That the Balanced Budget Multiplier Is Equal to One

Question 63

Question 63

Essay

Prove that the balanced budget multiplier is equal to one by using the government and tax multipliers.

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The government multiplier is equal to 1/...

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